Fueled by high petroleum prices and lucrative federal tax incentives, production and use of biodiesel is growing rapidly in the United States.  Most of the biodiesel production is based on soybean oil but projections for vegetable oil supply shortages are driving a search for crops that will yield more oil per acre.  Canola oil can provide higher oil yield per acre and an improved quality biodiesel compared with soybean oil.  This presentation will discuss the current state of  the biodiesel industry in the United States and then describe the potential role that canola may play in the future development of this industry.