Just exactly the process that my dad and I used except did it in a 2000lt milk vat. The process and nearly the time, is the same making 20lts as to 1000lts. When washing the oil used 50/50 water to oil, hence why only made 1000lts of Bio in a 2000lt vat. The milk vat is insulated so made it easier to heat oil and keep it warm enough to poor off the glycerin 24hrs later. Took a little bit to setup the mixers but once done it was worth while. Big note, when reheating to get water out of oil don't exceed 55 degress Celcius or you make varnish, which your engine doesn't like. We made a vaccum chamber which helped boil off water at a lower temp. The Bio is like a cleaner to your cars fuel system, so when you start clogging filters it's the bio cleaning the crud from what the standard Diesel leaves behind. So if you make clean bio, over time your system will clean out and you won't have to keep changing filters. BUT don't run it in Common rail engines because if you make one slight mistake on your batch you are up for big bucks at the mechanics. The old school diesels run like a charm on it, smoother and quieter. It worked out costing roughly .25c/ltr, we pay $1.45/ltr at the station.

I know a guy who was told by MickieBenZ of Portland to not run biodiesel in his 2009 R class, he did it anyway, ruined the engine, they did him a favor and sold him a new engine at cost, $11,000, new diesels are very sophisticated, shoot, you can have a 2010 VW TDI Jetta running in the shop, no diesel smell, no diesel noise, very impressive. In other words, do not run bio D in a car made after about 2000, fuel leaks, destroyed pumps, worst case engine.

...or you could not use cooking oil. The only oil I use goes onto salads and pasta. I can't remember the last time I fried something in oil. Sometime in the 60's I think.

Biodiesel is better for engines than petrodiesel but not necessarily for fuel systems which may contain rubber. Biodiesel eats rubber. Just make sure all rubber seals and hoses are neoprene or some other fuel-proof material.
Also make sure you wash AND DRY the fuel thoroughly. Get every last trace of soap glycerine and water out of it.
KOH is better than NaOH because the glycerine is less viscous and easier to drain off when cold. Also potassium is a plant nutrient. Unfortunately the price of KOH has gone through the roof since the homebrewers started buying heaps of it.
Lastly, if you are not making the stuff in 100 litre batches you are unlikely to ever have enough.

Diesel engines are so delicate, so easily offended and so GDF expensive to maintain, the money you saved by using diesel, in stead of Petrol, just went straight to the maintenance cost of the engine...

So this is cool man.
What about a membrane for cleaning and drying. These new super hydrophobic and oligophobic substances are making me think this morning. I found a peer reviewed article which noted "membranes with hygro-responsive surfaces, which are both superhydrophilic and superoleophobic, in air and under water. Our membranes can separate, for the first time, a range of different oil–water mixtures in a single-unit operation, with >99.9% separation efficiency, by using the difference in capillary forces acting on the two phases." This membrane is designed to reduce the cost of seperating water oil mixtures yet I think it would work well with this whole solution. So if you include the solar panels or wind power for the heat production You get a very viable alternative fuel system.

So, oil becomes diesel... So what? Burning something to drive or generate energy other than cooking and heating must be prohibited! Especially in Internal Combustion Engines, shouldn't we stop wasting valuable time in electrifying those engines? (in anticipation of the question, where will the electricity come, coal or gas? Non, won't have to! But even if it did, an electric motor is 5 times more efficient than an ICE to convert energy into kilometers)

re; sinan
I am not going to buy a car that I can't get out of the way of a hurricane in. Where are you going to get the extension cords?

I think production of biodiesel from waste oil is best left to dedicated small businesses, who have the time to collect from restaurants and fast food outlets, and can go through the labourious processes necessary- this machine, though laudible, takes far too much effort- plus you'd either have to fry yourself into a coronary or go scavenging used oil to make it worthwhile.
I once ran an old Vauxhall Astra (Opel Kadett with British badges) on new veg oil and about 20% mineral diesel- ran very well.
I know that some bus fleets in the UK have had major problems using part biodiesel in their fleets as it eats rubber seals (you'd think those companies would carry out preventative maintainance to avoid that effect but no, they'd rather leave their passengers constantly inconvenienced by frequent breakdowns).

Responding to sinan, the problem isn't energy conversion, but storage. The best lithium ion battery stores only about 10% of the energy per volume of either gasoline or diesel.