Fatty Acid Methyl Esters are produced through a chemical reaction called transesterification. This reaction involves the reaction of a vegetable oil or animal fat with methanol in the presence of a catalyst, usually sodium hydroxide or potassium hydroxide. The reaction produces two products, fatty acid methyl esters and glycerol. The chemical composition of FAMEs is similar to conventional diesel fuel.

However, Fatty Acid Methyl Esters have a lower energy content due to their higher oxygen content. This can result in lower fuel efficiency and decreased power output in engines that are not optimized for FAMEs. FAMEs can be produced from a wide range of feedstocks, including soybean oil, rapeseed oil, palm oil, and animal fats. The choice of feedstock can affect the properties of the resulting FAMEs, such as their viscosity, density, and cold flow properties.

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