I've seen this peanut oil story published in books and spread widely across the internet. Unfortunately, the real history isn't as clear as all that.
Gerhard Knothe, one of the USDA's top biodiesel researchers, found passages in "Chemical Abstracts" 6:1984(1912) and 7:1605(1913) in which Dr. Diesel writes:
at the Paris exhibition in 1900 there was shown by the Otto Company a small diesel engine, which, at the request of the French government, ran on Arachide (earth-nut or pea-nut) oil, and worked so smoothly that only very few people were aware of it. The engine was constructed for using mineral oil and was then worked on vegetable oil without any alterations being made.So yes, a early unmodified diesel engine did run on peanut oil, but it wasn't Dr. Diesel's first engine.
Veg On!
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