Palm oil and methanol were charged into the system using two separate raw material pumps. The volume ratio of oil to methanol was 1:1 and various catalyst amounts were used in the packed membrane reactor. First, methanol was charged continuously into the reactor using the third pump (circulating pump) and heat exchanger was started up to heat the reactant. Subsequently the reactor was filled with palm oil. Pressure inside the membrane was monitored by two pressure gauges and was controlled at 1 barg. The permeate stream containing biodiesel, glycerol and methanol was collected in the round bottom flask of the methanol recovery unit. Methanol which is one of the transesterification reactants and has a lower boiling point was evaporated, distilled and returned to the system to minimize its consumption.