Properly made biodiesel at all blends is good for the engine and injection pump. Your IP doesn't have seals that leak from biodiesel like the later 60x engines. The IPs in the 123 and earlier models don't start leaking from biodiesel use. Biodiesel has a higher lubricity than D2 has which actually benefits the IP. Even at low levels like B10 you get much higher lubricity values. The only draw back to properly made biodiesel is the gelling during the cold months. If temps start dropping and staying below freezing B20 may start gelling on you. Usually B20 is a pretty safe blend for most temps. But keeping a gallon jug of what is in your tank sitting out will give you an idea of what the fuel in your tank is doing.
Poorly or improperly made biodiesel will cause issues, so make sure you are making it correctly.
Also you don't need a two tank system for biodiesel. You can switch back and forth between B100 and D2 in one tank with not problems. The fuels are interchangeable so a second tank is not needed.
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Andrew '04 Jetta TDI Wagon
'82 300TD ~ Winnie ~ Sold '77 300D ~ Sold
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