Process diagram of biodiesel production (Source: Ortega et al. (2013)) 

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... for biodiesel production. It has been found that feedstock alone represents more than 75% of the overall biodiesel production cost. Therefore, selecting the best feedstock is vital to ensure low production cost. It has also been found that the continuity in transesterification process is another choice to minimize the production cost. Biodiesel is currently not economically feasible, and more research and technological development are needed. Thus supporting policies are important to promote biodiesel research and make their prices competitive with other conventional sources of energy. Currently, biodiesel can be more effective if used as a complement to other energy sources. Jayed et al. (2011) reviewed the prospects of dedicated biodiesel engine vehicles in Malaysia and Indonesia. Petro diplomacy has played its role in last few decades and that makes energy security a major concern worldwide. Rapid climate change and environmental protection is another vital issue to be addressed in recent energy policies. So an alternative carbon neutral transport fuel is a must in new sustainable energy mix. Biodiesel has immense potentiality to be a part of a sustainable energy mix. In this energy scenario, Brazil's success is a role model in utilizing its agro-industry for reducing poverty, greenhouse gas emission and petro-dependency simultaneously. Brazil commercialized bioethanol in mass scale by introducing flexible fuel vehicles in market. This dedicated engine idea moralizes a new concept of dedicated biodiesel engine vehicles for Malaysia and Indonesia. Southeast Asian countries, i.e. Malaysia and Indonesia is the largest producer as well as exporter of palm oil. Growing at highest yield rate among other biodiesel feedstock, palm based biodiesel is a top exported product for this region. This paper will quantify the prospects of a dedicated biodiesel engine vehicle for Malaysia and Indonesia that will initiate palm based biodiesel in fuel supply chain by leapfrogging the barriers of biodiesel utilization by boosting local automobile industry simultaneously. This article will also review on energy scenario of Malaysia and Indonesia and their renewable energy policies and challenges for coming decades. Jayed et al. (2009) previously reviewed the environmental aspects and challenges of oilseed produced biodiesel in Southeast Asia. Research on alternative fuel for the vehemently growing number of automotivesis intensified due to environmental reasons rather than turmoil in energy price and supply. From the policy and steps to emphasis the use of biofuel by governments all around the world, this can be comprehended that biofuel have placed itself as a number one substitute for fossil fuels. These phenomena made Southeast Asia a prominent exporter of biodiesel. But thrust in biodiesel production from oilseeds of palm and Jatrophacurcas in Malaysia, Indonesia and Thailand is seriously threatening environmental harmony. This paper focuses on this critical issue of biodiesels environmental impacts, policy, standardization of this region as well as on the emission of biodiesel in automotive uses. To draw a bottom line on feasibilities of different feedstock of biodiesel, a critical analysis on oilseed yield rate, land use, engine emissions and oxidation stability is reviewed. Palm oil based biodiesel is clearly ahead in all these aspects of feasibility, except in the case of NOx where it lags from conventional petro diesel. Recently, Ang et al. (2014) explored the recent development and economic analysis of glycerol- free processes via supercritical fluid transesterification for biodiesel production. In their review, Glycerol-free supercritical fluid processes including single-step and two-step transesterification for biodiesel production were reviewed and subsequently the advantages and limitations were highlighted. Value-added by-product from glycerol-free production such as triacetin is more profitable compared with glycerol produced in conventional biodiesel production. Furthermore, the quality of biodiesel could be enhanced with the presence of triacetin, which is co-produced in supercritical methyl acetate transesterification reaction. However, there are concerns regarding the huge energy required to conduct supercritical reaction at elevated temperature and pressure. Hence, economic consideration in terms of equipment needed and profit margin were discussed in order to study the profitability of glycerol-free supercritical biodiesel production in the industry. Results showed that glycerol-free supercritical dimethyl carbonate process has the highest profit margin, indicating that it is economically competitive and could provide larger revenue to biodiesel producers. According to Ortega et al. (2013), it is necessary to provide proper management of the biofuel along the supply chain, considering various factors in each of its stages as shown in Fig. 1. Supply chain begins with the production process of biodiesel (Fig. 2), with the transesterification reaction where the oil or animal fat react with methanol and catalysts such as NaOH, KOH or H2SO4 depending on the percentage of free fatty acids contained in the feedstock. Then proceeds to a settling stage in which separation of the biodiesel from the glycerol occurs by the difference of densities. The recovery of methanol is also made. After, crude biodiesel washing and neutralization processes are undertaken immediately in order to remove impurities such as methanol and residual catalyst, soap, mono- and di-glycerides, as well as glycerin. Subsequently, biodiesel is dried and ready as an end product. Further analyses to biodiesel are made to quality assurance purposes base on ASTM or EN standards. Table 1 lists some of the equipment and components in each of the stages of the supply chain and end-use comprising of metallic and polymeric materials that must be considered in the development of the biodiesel industry. This in order to take into account their compatibility with the biofuel. Biodiesel is an alternative fuel to diesel that is produced from renewable resources such as vegetable oils and animal fats. It is called first generation biofuel when it is obtained from competing food resources (e.g. sunflower, corn, safflower, canola, soybean), second generation from waste (e.g. waste vegetable oil, yellow and brown grease, tallow) and third generation from microalgae. The process by which it is produced the biodiesel is called transesterification, as can be seen in Fig. 3. This process consists reacting the oil or fat with a short chain alcohol, usually methanol, in the presence of catalysts that may be acidic, basic or enzymatic. The result is a mixture of fatty acid methyl esters (FAME) known as biodiesel. The main reason to convert the oil or fat into biodiesel is to reduce its viscosity obtaining similar properties of diesel. While biodiesel is a lipid-based fuel, diesel is a mix of paraffinic, olefinic and aromatic hydrocarbons derived from the processing of crude ...