I was talking to a customer today who's company here in Pittsburgh is involved with a British U.S. government financed program to convert used vegetable oil into Diesel fuel. He said the cost is running around $1 per gallon ready for delivery to the gas station.
He said they are also adding ethanol to the mix to help with combustion and emissions. One of the major upsides is much lower emissions using this fuel over petroleum based diesel. He said they should be on line by the end of the year.
The companies fuel once they go on line is being given period of 5 years to sell it tax free. Interesting stuff is starting to happen.