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Friend with limo adapted for biofuel (4,3)

Ross

I believe the answer is:

palm oil

I'm a little stuck... Click here to teach me more about this clue!

'biofuel' is the definition.
I can't tell whether this definition defines the answer.

'friend with limo adapted' is the wordplay.
'friend' becomes 'pal' (pal can mean a friend).
'with' means one lot of letters goes inside another.
'adapted' indicates anagramming the letters.
'limo' anagrammed gives 'lmoi'.
'pal' going around 'lmoi' is 'PALM-OIL'.

'for' is the link.

Can you help me to learn more?

(Other definitions for palm oil that I've seen before include "Product of tropical tree" , "Fatty tree product" , "Vegetable fat" .)

I've seen this clue in The Telegraph.
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