Transesterification is a chemical process that converts fats or oils into biodiesel and glycerol. This reaction involves mixing triglycerides, which are found in vegetable oils or animal fats, with an alcohol, usually methanol or ethanol, in the presence of a catalyst, often sodium hydroxide or potassium hydroxide. The result is the formation of fatty acid methyl esters (FAME), which is biodiesel, and glycerol, a byproduct. This process is significant for producing renewable energy sources, as biodiesel can be used in diesel engines and is considered more environmentally friendly than fossil fuels. Transesterification helps reduce greenhouse gas emissions and promotes the use of renewable resources, making it an important step in sustainable energy production.