Ok deleted my post for bad info. Shaolin was basically correct I think.
Method 1, common: Transesterification
What enkei did (I think)
http://en.wikipedia.org/wiki/Transesterification
Results in fuel with glycerols which presents some "challenges."
Method 2, Hydrocracking
This is an actual refining process, but vegetable oils, etc. can be used for input. Not sure you can build an, errm, micro-refinery at home.
http://en.wikipedia.org/wiki/Hydrocr...#Hydrocracking
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