NOVELTY - Production of fatty acid esters from soapstock generated in the alkali refining process, is new.    USE - For production of fatty acid esters, which are useful as biodiesel (claimed).    ADVANTAGE - The method is compact, environmentally safe, and economical for commercial scale production of fatty acid esters. In the process, the lipase as catalysts facilitate esterification even in presence of high amounts of water and components other than fatty material; the easy separation of the aqueous phase and other impurities increases the yield as compared to the fatty acid processes; and less waste is generated as compared to prior art. The esterification at low temperature simplifies the process and equipments, hence the process can be carried out at high flexibility by using existing plants with minor changes, or new plants capital investment is considerably low. The process enables existence of small-scale ester production plants near to the oil refineries while reducing handling and transportation costs. The wastewater rich in sodium sulfate formed in the process can be recovered and used in paper mill industry; and sterols are also recovered in the process, which can be used as raw material for other products    DETAILED DESCRIPTION - Production of fatty acid esters directly from any soapstock generated in the alkali refining process, involves:    (1) neutralizing and splitting the soaps with strong acids until pH 2 - 8 is reached;    (2) followed by enzymatic esterification using Lipase (100 ppm - 10 wt.%), in presence of 1-6C alkanol (5 - 100 wt.%) in relation to the fatty components, at 15 - 70degreesC via batch or continuous processes;    (3) agitating the mixture mechanically or just by circulation during 3 - 5 days at 15 - 70degreesC, where acid value is measured in the organic layer along the days, and reaction is stopped when acid value does not decrease after 24 hours;    (4) separating the ester phase by allowing settling of the mixture, or pumping the mixture to a centrifuge, or filtering out the solids;    (5) neutralizing the residual acid value from the incomplete enzymatic esterification using alkali solution, where the alkali solution is sodium, potassium, calcium, aluminum, lithium or ammonium hydroxide and their derivatives such as organic amines;    (6) distilling off the crude esters using batch technique or continuous flash distillators, where residual moisture or methanol is stripped off using a degasser just prior the main distillation.    The soapstock contains (%): water (10 - 60), sterols (0.1 - 2), and fatty derivatives (35 - 85) including partial glycerides. In the process, light color esters (80 - 90%) are produced continuously.