Transesterification or alcoholysis is the reaction of a fat or oil with an alcohol to form esters and glycerol. The purpose of transesterification reaction is to reduce the viscosity of oils to a value similar to normal diesel. The reaction is shown in Fig. 1. Transesterification reaction can be performed with alkali, acid or enzyme catalyst. Transesterification reaction with alkali and acid catalysts is faster and requires lower costs as compared to the enzyme catalyst process.