The reaction mechanism for alkali-catalyzed transesterification was formulated as three steps (Eckey, 1956). The first step is an attack on the carbonyl carbon atom of the triglyceride molecule by the anion of the alcohol (methoxide ion) to form a tetrahedral intermediate. In the second step, the tetrahedral intermediate reacts with an alcohol (methanol) to regenerate the anion of the alcohol (methoxide ion). In the last step, rearrangement of the tetrahedral intermediate results in the formation of a fatty acid ester and a diglyceride. When NaOH, KOH, K2CO3 or other similar catalysts were mixed with alcohol, the actual catalyst, alkoxide group is formed (Sridharan and Mathai, 1974). A small amount of water, generated in the reaction, may cause soap formation during transesterification. Fig. 4 summarizes the mechanism of alkali-catalyzed transesterification.