During recent decades, considerable effort has been expended world-wide to reduce dependency on petroleum fuels for power generation and transportation through the search for suitable alternative fuels that are environmentally friendly. In this respect, vegetable oils are a promising alternative to diesel fuel. However, the high viscosity, poor volatility and cold flow characteristics of vegetable oils can cause some problems such as injector coking, severe engine deposits, filter gumming and piston ring sticking and thickening of lubrication from long-term use in diesel engines. These problems can be eliminated or minimised by transesterification of the vegetable oils to form monoesters. Although transesterification improves the fuel properties of vegetable oil, the viscosity and volatility of biodiesel are still worse than those of petroleum diesel fuel. The performance of a diesel engine with such biodiesel operation can be improved further with the concept of the low heat rejection (LHR) engine. In th...