I wonder who will be the first to run one of veggie?
The problem with downsizing a diesel engine is that in many of the high precision parts the tolerances scale down proportionately. For example, say that the pintle in a PSD or Cummins common rail injector has a total diametrical size tolerance window of .0050mm (0.000197"), meaning that it can only vary from the ideal, as-designed size by .0025mm (0.0000985") big or small.
If the cylinder displacement shrinks by 30% then that tolerance could very easily also shrink by 30% since what is important is how the part interacts with all of the adjacent parts, and they all got smaller because of the smaller fuel demand. It's not a linear and direct thing, but that's about what happens in generalities. So now that total tolerance window could easily be 0.0015 mm (0.000059").
That is a really tough part to make in large volume. It's not terribly easy to make in a small, prototypical volume.