MADISON, Wisc. (AP) -- As gas prices hover around $3 a gallon, many motorists have been asking for an alternative.

Bio-diesel, some have suggested, could certainly help the situation.

Recently, President George Bush announced a plan to institute an alternative fuels initiative, and Wisconsin Gov. Jim Doyle pledged millions of dollars to the development of alternative energy.

Dr. John Anderson, life sciences and chemistry instructor at Mid-State Technical College's Wisconsin Rapids campus continued the conversation Wednesday when he showed his chemistry students the technique of converting vegetable oil into bio-diesel.

He hopes that by teaching the process, his students will look at energy differently and that they could influence others to consider alternative fuels. "It is a way to incorporate the real world into it," he said.

The problem with implementing the widespread use of bio-diesel now is the cost, Anderson said. It would be about the same price as regular diesel fuel, due to the cost of purchasing the chemicals needed to convert vegetable oil into bio-diesel, he said.

Students in Anderson's class had definite opinions about bio-diesel's potential.

It could reduce pollution and potentially save money if it takes hold as a legitimate alternative fuel, said William Mahoney, 17, of Wisconsin Rapids. "They could lower a lot of fuel costs," he said, because the addition of a new fuel source could create competition in the market.

Bio-diesel use could encourage industry development as well, Mahoney said.

Economic and environmental reasons are strong reasons to consider bio-diesel, said Scott Fearnow, 33, of Wisconsin Rapids, who is one of the students. "Anything we can do to lessen pollutants," he said. "It's got to start somewhere."

The stories that are told of people going around to restaurants collecting cooking oil and refining it to make into fuel for their diesel Volkswagens are true. In fact, Anderson said early diesel engines were designed with the idea that they would run on vegetable oil, but the cost of conventional diesel fuel, combined with inherent problems the vegetable oil had staying fluid at room temperature, made it difficult to use. "Diesel engines don't necessarily like it," he said.

To make vegetable oil usable, people mix it with alcohol.

As Anderson explained to his class, the oil is collected from a source, say a restaurant grease fryer, heated to boil off water, then methyl alcohol is added along with a catalyst called lye. Then the concoction needs to be mixed for an hour, and water needs to be added to eliminate any soap (yes, ordinary soap) that might have formed as a byproduct of the reaction. What is left is bio-diesel, ready to be burned in a diesel engine or as a substitute for home heating oil.

If all of the equipment is purchased to do a modest-scale processing, one person could spend an hour a week to make 50 gallons of bio-diesel.

And if market conditions and high gas prices continue, drivers could see bio-diesel at the pumps in five years, Anderson said. "Legislation could really help push it faster."