Loon... the entrepreneur!
Actually, a good mate of mine is working on such a device right now. It's been trialled and it works. He and a couple of boffins at Hobart Uni are building a full scale plant that will turn virtually anything with a high hydrocarbon (fat/wax/oil) content into biodiesel. They already have customers such as abattoirs ready to install the plant and turn tallow and other fat waste into fuel. (Did you know that butchers have to pay for the disposal of their waste fat trimmings?)
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