Last fall, the city of Kalamazoo, Michigan announced it would use biodiesel provided by Western Michigan University… Bronco Biodiesel… to fuel its city buses. Now, the city is renting out a building for the plant… at just $1 a year! According to a WMU press release, the biodiesel plant is expected to produce 100,000 gallons a year. The biodiesel will be made from recycled restaurant grease.

From the Bronco Biodiesel web site:
We are developing a small-scale (100,000 gallons/year) biodiesel production facility in the City of Kalamazoo to prevent the “trapped” BTUs from going down the drain. Our hope is that the facility will serve as a model for how universities and municipalities can work together and convert discarded oil into a clean burning, carbon neutral, transportation fuel.