New Method Simplifies Biodiesel Production
 

http://www.ars.usda.gov/is/AR/archiv...diesel0405.htm

They are using soybean flakes are incubated in alkaline methanol, eliminating the need to isolate and purify the oil before transesterification.

Could the same process be used with canola?

Hexane is used mainly for making cooking oil, and is not necessary for canola used just for fuel. "cold-press" canola does not require Hexane for extraction of the oil, but reduces the yield of available oil by 1-2 percent.

Soybeans are fairly large, and can be flaked easily. Canola seeds are extremely small, and would probably be ground to dust.