NOVELTY - Producing biodiesel and crude glycerol by-product which is converted to methanol, involves: transesterifying 1-4C alcohols and catalyst along with triglyceride to obtain stream of alkyl esters, crude glycerol, unreacted alcohol and catalyst; separating fraction of crude glycerol; collecting alkyl ester biodiesel; heating crude glycerol, superheated steam and oxygen to obtain synthesis gas; cooling, pressurizing and then introducing synthesis gas into methanol synthesis reaction zone along with catalyst to form methanol, water and heavier products; and separating methanol and water.    USE - For producing biodiesel and crude glycerol by-product which is converted to methanol (claimed).    ADVANTAGE - The combination of high methanol prices, low glycerol prices and the availability of sufficient by-product crude glycerol, have made the process commercially attractive for the establishment of small economical methanol production facilities that can be integrated with existing biodiesel plants. The process can be scaled to any size biodiesel facility, but it is preferred that the facility be relatively large, for e.g. in excess of 20 million gallons per year of biodiesel production. Power generation can also be added to the process to off-set future costs in electricity.    DETAILED DESCRIPTION - Producing biodiesel and a crude glycerol by-product which is converted to methanol, involves: i) providing a mixture of at least one 1-4C alcohol and a transesterification catalyst; ii) conducting the mixture, along with a triglyceride feedstream, to a transesterification reaction zone operated at transesterification conditions thereby resulting in a transesterification reaction product stream comprised of alkyl esters, crude glycerol, unreacted alcohol, and transesterification catalyst; iii) treating the product stream with a neutralizing agent thus neutralizing the reaction product stream; iv) conducting the neutralized product stream to a first separation zone where at least a fraction of the crude glycerol is separated from the product stream, thus resulting in a crude glycerol stream and a crude glycerol lean product stream; v) separating the unreacted alcohol from the crude glycerol product stream; vi) collecting the alkyl ester biodiesel product; vii) introducing crude glycerol, a superheated steam, and an oxygen into a reaction zone where the resulting mixture is heated to 1500-1900 degrees F and at 200-600 psig, thereby resulting in a synthesis gas product stream comprised predominantly of H2 and CO with minor amounts of CO2 and having a temperature substantially that of the reaction zone; viii) cooling the synthesis gas product stream to 360-80 degrees F; ix) pressurizing the cooled synthesis gas product stream to a pressure of 500-1500 psig; x) introducing the pressurized cooled synthesis gas into a methanol synthesis reaction zone along with methanol synthesis catalyst, which methanol synthesis reaction zone is maintained at 350-450 degrees F and pressure of 500-1500 psig, thereby resulting in a product stream comprised of methanol, water and heavier products; xi) conducting the methanol synthesis product stream to a second separation zone where a tail gas stream is separated from a liquid product stream, which liquid product stream is comprised of methanol and water; xii) conducting the mixture of methanol and water to a third separation zone where substantially all of the methanol is separated from the water; xiii) conducting the liquid product from the separation zone to a distillation zone where methanol is separated from the water component; and xiv) separately collecting the methanol and water.    DESCRIPTION OF DRAWING(S) - The figure shows a simplified flow diagram of process steps for producing biodiesel from triglyceride source with crude glycerol side stream which is converted to methanol.