Emission production as you state it is only a problem on a local level where the emissions are most concentrated (dense cities). Even electric cars will have emissions (either in production or at whatever plant is making the electricity for it). It's the part about digging up materials which have been locked underground for millions of years and then releasing those emissions into the atmosphere that is the global problem. If all of the energy and consumables your vehicle used during it's entire lifetime (including manufacture) were harvested from plants or otherwise scraped off of the surface of the biosphere instead of from within the ground you would essentially be close to net-neutral impact on the planet as far as emissions are concerned (not that there is no impact, it would just be ridiculously low impact).
Biodiesel (as usable in my VW Jetta) is only a little less efficient than petrol / oil based diesel. Mileage is about 5mpg lower or so, but you have to make sure the biodiesel is clean of other contaminants which can be a bit laborious depending on the original source. Of course most people I am aware of will typically use an 85/15 blend for better performance (15% regular diesel).
As far as emissions go, I don't think it's too much different but I don't know much about that. I guess it would entirely depend on how "clean" and viable the input is.
In any case, if we can turn something which truly does not have a better use other than to be cleaned (at great expense) and sent back into the biome into a usable fuel at less expense I fully support research into it. It seems to be much smarter than ethanol where suddenly the price of fuel becomes linked to the price of food. We honestly don't currently have a better use for human sewage anyways considering it is not considered fit for fertilizer either. Besides, if this comes to America just think of how much fatty acids are already present in the McSewage, or how we could just re-introduce Olean oil if we needed to increase production (how's that for a disgusting thought?).
- Toast
Source: http://rss.slashdot.org/~r/Slashdot/slashdotScience/~3/GT2UffMkpDE/biodiesel-from-sewage-sludge
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