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Originally Posted by Daekar
The ALH engine you have is widely considered the best TDI engine that has been made. It is flexible, reliable, and efficient, and with proper attention can run biodiesel without issues.
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Biodiesel is among my favorite alternative fuels, but I'd also suggest you to try pure vegetable oil, either with some dual-tank system or eventually keeping it as a single-tank. A water+meth setup is a good feature to run on alternative fuels with a direct-injection Diesel, since it reduces the occurrence of issues related to glycerin glazing and lube oil contamination.
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Note the oil forum stickies, and educate yourself on diesel runaway that can occur when either the turbo seals leak or the intercooler accumulates oil from the vapor out of the crankcase ventilator. Also, be aware of the possibility that your intake manifold can clog with soot from the EGR and CCV systems combined.
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Getting a blow-by oil catch can for the CCV is a good improvement, and helps to prevent the EGR-related problems. Well, altough it can be blamed for an increase in NOx, I'm not unfavorable to bypass the EGR, or even deleting it entirely, since it's a source of problems while running alternative fuels. A water+meth setup is often reported to keep the intake manifold cleaner too, and if you eventually delete the EGR it might compensate its effect on NOx reduction.