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The chemical nature of biodiesel allows it to be blended with any kind of distillate, or diesel fuel. This includes light fuels such as jet fuel, kerosene, No.1 diesel, or military fuels (JP8, JP5), as well as normal diesel fuel like No. 2 diesel for diesel engines and gas turbines, and heating oil for boilers or home heating.
The present market for biodiesel extends beyond fleet and transport applications. Biodiesel is easy to use, handle, store and blend. It is biodegradable and non-toxic. It is an ideal fuel for environmentally sensitive areas and for diesel applications that have emissions considerations (school buses, mines, marine, forestry). The potential applications include:
on-road transportation
marine & other applications 
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off-road transportation
The reductions in particulate matter (PM) emissions offered with biodiesel and biodiesel blends is of specific interest to off-road diesel applications, since sulphur content regulations for off-road diesel fuels is changing. Federal legislation proposed in 2004 recommends that off-road diesel (construction, mining, marine and locomotive) be limited to 500 ppm (current on-road rates) by June 1, 2007 and to the Ultra Low Sulphur Diesel (ULSD) limits (15 ppm) by June 1, 2010. The proposed legislation also phases in similar reductions in the Northern Supply Area (ie. Northern Canada). Biodiesel contains no sulphur and significantly reduces PM emissions at any blend.
Heating oil and diesel fuel that is dyed red for off-road use (agriculture, power, boiler fuels, construction, mining, forestry etc.) can contain as much as 5000 ppm sulfur today. By blending biodiesel into off-road diesel fuel, large Sulphur Dioxide reduction benefits can be generated. Even if when off-road diesel regulations come into effect, significant emissions reductions can be generated.