I feel suspicious about biodiesel and I've heard contradictory analyses about it.
I would have thought that what you quoted and wrote made perfect sense.
I checked what was happening in Europe, and what attracted my attention was that Germany was the highest producer in the EU-- not that it's much in terms of quantity, but Germany is very environment conscious, so if they're taking the lead the chances are that they have studied the matter thoroughly.
Here is the link I've read:
http://www.ebb-eu.org/biodiesel.php#whatis