NOVELTY - Production of esters of fatty acids and 1-3C alkyl alcohols involves providing a reaction mixture containing free fatty acids, lipase and at least one polyhydric alcohols; allowing mixture to react under formation of esters of fatty acids and polyhydric alcohols until free fatty acid content has decreased by more than a factor of 2; separating reaction mixture into a fatty phase and alcoholic phase; reducing the free fatty acid content of fatty phase to acid value below 2; and transesterifying fatty material with 1-3C alkyl alcohol.    USE - For production of esters of fatty acids and 1-3C alkyl alcohols (biodiesel) from a fatty material containing free fatty acids (claimed).    ADVANTAGE - The enzymatic solvent-free process allows fatty raw materials with variable free fatty acid contents to be utilized as raw material for biodiesel production. The process saves time in comparison with the prior art by no longer aiming for an almost complete esterification of the free fatty acids with the polyhydric alcohol but instead, makes use of the productive, first part of the esterification and after partial esterification, and reduces the residual free fatty acid content by a vacuum stripping process which is preferably combined with an existing physical refining operation or by a blending process. The process provides an economic and environmentally friendly alternative to the use of the acid catalyzed esterification processes that are currently used; it also causes less corrosion and produces less salt by-products. Moreover, it can accommodate raw materials with widely different FFA (free fatty acid) contents. Using the process, only small amount of monoglycerides losses during vacuum stripping, and thus improving the biodiesel yield.    DETAILED DESCRIPTION - Production of esters of fatty acids and 1-3C alkyl alcohols from a fatty material containing free fatty acids, involves a) providing a reaction mixture containing free fatty acids, a lipase and at least one polyhydric alcohols; b) allowing the mixture to react under formation of esters of fatty acids and polyhydric alcohols until the free fatty acid content has decreased by more than a factor of 2; c) separating the reaction mixture into a fatty phase and an alcoholic phase; d) reducing the free fatty acid content of fatty phase to an acid value below 2 (mg KOH per g) by subjecting it to a process of vacuum stripping and/or by blending it with a glyceride oil having an acid value below 2 (mg KOH per g); and e) transesterifying the fatty material resulting from step (d) with a 1-3C alkyl alcohol.    DESCRIPTION OF DRAWING(S) - The figure shows a flow diagram for the production of esters of fatty acids and 1-3C alkyl alcohols from a fatty material containing free fatty acids.