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Fossil fuel resources are decreasing daily. As a renewable energy, biodiesel has been receiving increasing attention because of the relevance it gains from the rising petroleum price and its environmental advantages. This review highlights some of the perspectives for the biodiesel industry to thrive as an alternative fuel, while discussing opportunities and challenges of biodiesel. This review is divided in three parts. First overview is given on developments of biodiesel in past and present, especially for the different feedstocks and the conversion technologies of biodiesel industry. More specifically, an overview is given on possible environmental and social impacts associated with biodiesel production, such as food security, land change and water source. Further emphasis is given on the need for government’s incentives and public awareness for the use and benefits of biodiesel, while promoting policies that will not only endorse the industry, but also promote effective land management.
