The concept of using vegetable oils as fuel dated back to 1895 when the first diesel engine powered by peanut oil was developed by Dr Rudolf Diesel (Sheaves, 2001). However, the use of vegetable oil as fuel became insignificant when crude oil was discovered a few years later. Biofuel from vegetable oils once again drew world’s attention due to the energy crisis in the 1970s. With increasing concern on environment, rising oil price and rapid technological advancement, biofuel in the form of biodiesel has emerged as an important alternative fuel at present.