This paper presents an overview of the modification of clay minerals by propping apart the clay layers with an inorganic complex. This expanded material is converted into a permanent two-dimensional structure, known as pillared clay or shortly PILC, by thermal treatment. The resulting material exhibits a two-dimensional porous structure with acidic properties comparable to that of zeolites. Synthetic as well as natural smectites serve as precursors for the synthesis of Al, Zr, Ti, Fe, Cr, Ga, V, Si and other pillared clays as well as mixed Fe/Al, Ga/Al, Si/Al, Zr/Al and other mixed metal pillared clays. Biofuels form an interesting renewable energy source, where these porous, catalytically active materials can play an important role in the conversion of vegetable oils, such as canola oil, into biodiesel. Transesterification of vegetable oil is currently the method of choice for conversion to biofuel. The second part of this review focuses on the catalysts and cracking reaction conditions used for the production of biofuel. A distinction has been made in three different vegetable oils as starting materials: canola oil, palm oil and sunflower oil.