Waste vegetable oil (you have to filter it) and homemade biodiesel are the only real cost-effective options. Kerosene will burn in a diesel engine, but it's more expensive right now. You can buy vegetable oil for about $4 a gallon, so it's also more expensive than diesel fuel. For now.
Another alternative is to fumigate natural gas or propane into the intake along with diesel/vegetable oil in the fuel tank. Natural gas costs about 1/3 as much as diesel, you can run up to 30% natural gas.
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