2. 1900 Vegetable oil is used as a diesel fuel when Rudolf Diesel shows that a diesel engine can run on peanut oil Vegetable oil is used as a diesel fuel when Rudolf Diesel shows that a diesel engine can run on peanut oil. 1930-1940 Kerosene and fuel oil begin to replace wood as primary energy source. After World War II, the ethanol fuel industry closes down in the United States, with the arrival of low-priced, abundant petroleum fuels. Electricity and natural gas displace wood heat in most homes and commercial buildings. Governments begin to fund research into converting biomass into useful energy and fuels. Companies such as Chevron, Texaco and Amoco Oil Company begin to market ethanol- blended fuels to U.S. consumers. 1950 Governments begin to fund research into converting biomass into useful energy and fuels. Companies such as Chevron, Texaco and Amoco Oil Company begin to market ethanol-blended fuels to U.S. consumers. Biomass power plants are built in North America. 1970-1980 A survey of 133 countries by the International Energy Agency shows that the biomass share of total energy consumption is 10.5 per cent. 2000