In CLRI, Department of Chemical Engineering has been carried out the R&D for the alternate energy, such as Biodiesel. CLRI achieved a process for the preparation of Biodiesel from vegetable oils. An international Patent has been filed through the Intellectual Property Management Division CSIR, New Delhi CSIR in the year 2003. (IMPD Ref No. -0290 NF 2003, PCT / IB 03/ 05349 (21.11.2003).      US & JP 20050108927, Sl No. 718559 (Nov 24, 2003). Australia Vol. 19 No.30,  INID No. AU-A-2003282270, World Intellectual Property Organization-WO/2005/052103, applicable for 184countries in the world).

The process for the production of Biodiesel involves gas-liquid catalytically transesterification of vegetable oils such as rice bran oil under the specified controlled conditions. The raw materials and auxiliaries required for the process are readily available indigenously. The process generates glycerol as the byproduct, which finds enormous industrial application. Biodiesel fuel properties were analyzed in Indian Institute of Petroleum (IIP), Dehradun. The test engine trials were carried out in IC Engine Department of Anna University, Chennai
Biodiesel produced by this process is an alternative fuel for diesel engines without any structural modifications. The performance of the engine is at par with that of the normal petroleum diesel available in the market in respect of specific fuel consumption, exhaust gas emissions, temperature, smoke, break thermal efficiency and mechanical efficiency.
Further research work continued on Scale-up Studies, Fuel Properties and Engine Tests & Emission Characteristics Plan Approved by the Scientific Committee formed by Dr.T.Ramasami, former Director, CLRI in 2005.
The process has been standardized at pilot scale of 150 L batch capacity. More than 26,000 km on-road trials have been carried out in MTC (Metropolitan Transport Corporation) buses in Chennai using the Bio-diesel produced from pilot plant. Fuel performance improvement has been confirmed by the increase of KMPL.
In the leadership of Secretary, Department of Science and Technology & Director General CSIR,
Dr T Ramasami (former Director CLRI),  M/s Vel Biodiesel Energy Pvt Ltd & CLRI had signed the agreement for the Biodiesel technology transfer in CLRI on 28th November 2005. The Biodiesel Process demonstration was inaugurated by Dr. S. Rajamani, (former Director, CLRI) and Dr.A.B.Mandal, Director Grade Scientist on 28th June 2006 in the Chemical Engineering Pilot Plant to the company. The company has been satisfied with the process demonstration and the training provided by CLRI.
Today in the CSIR Foundation Day Celebration, CLRI releasing the technology transfer documents to M/s Vel Biodiesel Energy Pvt. Ltd after the payment of  2nd and 3rd installments of sum of Rs 8988800/= ( Rupees Eighty Nine Lakhs Eighty Eight Thousand and Eight Hundred only). The DD for the Biodiesel Technology has been handed over by Mr. S.V. Balraj, Managing Director, M/s Vel Biodiesel Energy Pvt Ltd to Dr AB Mandal , Director CLRI on 7th September 2007 in the presence of Mr. S.P. Velayutham, Chairman, M/s Vel Biodiesel Energy Pvt Ltd  and the area leaders of CLRI.