Yes, I run biodiesel in my VW Jetta. As a fuel it works great. It has better lubricating qualities than the new low sulfur diesel fuels so it is better for your engine.
Several warnings about running in a diesel boat. First, biodiesel will break down any rubber fuel lines. Many older boats have rubber lines running from the fuel tank and bio will break these down very quickly leading to failure on the water.
It is also an EXTREMELY effective solvent. It will break down all of the deposits left in your fuel tank from running years of regular diesel and wash these into your fuel lines and filter. Expect to be changing your filter every couple of months and bring a spare with you for at least the first year.
Bio has a higher temperature gel point than regular diesel fuel. If you live in a cold area, you need to take precautions to ensure that the fuel doesn't gel in your tank. In the winter either mix it with 80% regular diesel (20 bio, 80 regular), heat your tank or add large doses of anti-gel. Bio has a lower cetaine rating than regular diesel (cetaine is diesel's equivalent to octaine). You might experience slightly less power from your engine. There are cetaine boosts you can add but it's usually not worth the cost unless the performance degradation is significant.
As for the cost of manufacturing -- lately it's more like 70-80 cents per litre. The cost is tied to Methanol which is in turn tied to the cost of oil. I'm involved in an Island based biodiesel cooperative - several members make their own fuel, and one has a large enough production to supply the membership with about 4 barrels of bio per week at a cost of $1.45/L. Check out
www.islandbiodiesel.ca and become a coop member if you are interested in learning more.
Interesting to note that biodiesel is not classified as a fuel and is in the same category as cooking oil.
