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Increased environmental awareness and depletion of resources are driving to develop alternative fuel from renewable resources that are environmentally more acceptable. Esters of fatty acids (bio-diesel, derived from the transesterification vegetable oils, have properties similar to components of peh-oleior~. based diesel fuel Cost has been a major factor slowing the commercializatio of bio-diesel! Glycerol is the coproduct of the esterification process. In this work the feasibility of the glyc-erol of vegetable oil. with crude glycerol derived from the transesterification of the vegetable oils and animal fats was studied. Utilization of the crude co-product of the biodiesel process was investi-gated for improving the overall economy The transesterification of soybean oil for fuel purpose was optimized. Optimization results are presented. transesterification of beef tallow produces a mixture of esters which is more concentrated in the saturated fatty acids. Physical properties of these es-ters are similar to esters of soybean oil. Reaction results and properties for beef tallow are pre-sented.