There's all manner of different "bio diesels" out there - I used to help make it at a local firm. There can be anything from unrefined veg oil with a few additives through to properly filtered, transesterification processed and dried fuel and all manner of in-betweens. Then there's the question of what cold-weather additives have been added: "plain" can set at relatively warm temperatures, a lot of people mix with normal winter diesel in mild winter weather to stop it from setting.
You can get all sorts of fancy pre heaters that will help to mitigate problems with it solidifying.
Other things to watch are:
- that if there's any residual fats or soaps or water in there it will block fuel filters
- if there's any residual methanol (used in processing but should be boiled off, however there's always some left) it can bugger up some seals (including those in some timing pumps - not sure about the tdi)
- if there's any water it can corrode stuff
- if its unprocessed it you will smell like a chip van!
- if there's any water in the bottom of your tank it can cause problems, it will tend to mix with biodiesel and form soapy **** in your filters instead of being repelled by normal diesel. Replace all filters, check and empty water traps if fitted, drain crap out of your tank.
- biodiesel will often rinse any ****e that is lining your tank, lines, filters out and clog stuff up down stream
- keep your receipts in case you get dipped by VOSA wombles
Having said all that, we produced a good amount (with varying quality) and had a good number of happy customers - most problems encountered were with clogged filters. I'd be wary of where I buy it from and make sure I knew a good few people who'd tried it long-term from the same supplier. We were doing it on the level and paying duty and trying to do a decent job but the raw materials became quite expensive. A lot are just bunging some white spirits into raw veg oil....
I'd not just bung it in but do a good bit of research first and take a careful approach you may save ten bob a litre but a buggered up engine, timing pump or a tow home can be very expensive.
Personally though, I'm sticking to petrol, much nicer to drive!