Abstract: Besides policy factors, five methods of cost-cutting of biodiesel are reviewed, including new raw material with higher oil content, shorter regeneration cycle, which is suitable for infertile soil and different climatic conditions; heterogeneous catalysts；new technologies (e.g. supercritical methanol and ultrasonics) ；higher added value utilization of by-product glycerin with simple method (propylene oxide chloride, 1,3-propanediol, pyruvic alcohol etc. ) and moderate scale of production.