Yep, it works fine. Now the problem with it is that any soap you make out of it is likely to be visible and solid. There's an annoying 'catastrophe' that can happen called 'glop'- there's an example in the middle of this web page:
http://localb100.com/cbt/testingoilforwater/
anyway, glop can happen sooner if you're using both NaOH (lye- rather than KOH, which won't cause glop) and either animal fats, hydrogenated, or tropical fats (palm, coconut oils etc). It's preventable if you do titration and don't use oil over 3 or 5 with NaOH, or use KOH for any of your fuel (buy KOH at
www.braintan.com)
and yes, any of those fats will also make a biodiesel with worse cold flow, so you'll gel at a warmer temperature than you would if your fuel was liquid canola for example.
Mark