I have been using biodiesel for some time now on my CNC lathe. The water soluble coolant that I used previously was causing problems with the linear bearings seizing (presumably from oxidation) following periods of inactivity.
I know of a professional CNC turning company that uses oil that looks like, and has the consistence of honey, so decided to abandon water based coolant for an oil based solution. The cost of such oil coolant is prohibitive so I decided to use biodiesel. This worked fine but left a sticky residue. I now dilute the biodiesel with ordinary diesel (ratio 3 parts biodiesel to 1 part diesel). This leaves no sticky residue and the machine is now very clean.
Biodiesel has a high flash point (higher than ordinary diesel) and has excellent lubrication properties.
The part being machined in the video is part of an oil filter adaptor I manufacture. I had some 32mm threaded adaptors which were not popular so I decided to re-machine them to 27mm thread.
The material being cut is 12L14 steel and DOC during roughing is 0.4mm at a feedrate of 0.25mm/rev. The finish cut is done at 0.1mm/rev. Threading is done at 900rpm.
I also mix biodiesel with kerosene for manual applications with a squirt bottle on my manual lathe and milling machine. I also use raw biodiesel as a hand tapping lubricant (works great).
See video here
http://www.youtube.com/watch?v=jxEk4o5OLT4Regards
Chrisjh