TECHNOLOGY FOCUS - BIOLOGY - Preferred Components: The feedstock is algae and/or dried distillers grain (DDG). The feedstock includes Jatropha, palm fruit fiber, rice husk, rice bran, hard wood trees such as poplar, fir, pine, oak and maple, macro algae kelp and halophytes.    TECHNOLOGY FOCUS - INORGANIC CHEMISTRY - Preferred Components: The water content of the combination before reaction is at least 3 wt.% of the dry weight of the feedstock. The water content of the feedstock after drying is 3-5 wt.% of the dry weight of the feedstock. The acid catalyst is sulfuric acid.    TECHNOLOGY FOCUS - ORGANIC CHEMISTRY - Preferred Method: The method preferably involves combining a feedstock with an alcohol and an acid catalyst, where the feedstock comprises free fatty acids, glycerides, cellulosic material (at least 10 wt.%, based on the dry weight of the feedstock), and proteins (at least 10 wt.%, based on the dry weight of the feedstock); and reacting the feedstock and the alcohol at 140-260 degrees C or 175-275 degrees C, and at a pressure to prevent boiling of the alcohol during the reaction (preferably at least 20 psig above the vapor pressure of the alcohol at the temperature of the reaction) to generate fatty acid alkyl esters, cleave the cellulosic material, and shorten the proteins. The method further involves adding a fatty acid alkyl ester to the combination before reacting; separating the resulting fatty acid alkyl esters from the resulting cleaved cellulosic material; drying the feedstock prior to combining the feedstock with the alcohol and acid catalyst; fermenting the cleaved cellulosic material to produce ethanol; and converting the phorbol esters if present, to non-toxic materials. Preferred Components: The amount of catalyst present in the feed stock is 4-8 wt.%, based on the dry weight of the feedstock. The alcohol is methanol or ethanol. The amount of alcohol present in the feedstock is 50-320% molar excess of the contained oil. EXAMPLE - Dry algae (1000 g) was reacted with methanol (1500 g) in presence of acid catalyst (25 g) at 140-180 degrees C, and a pressure of 200-500 psig for 1-2 hours. The initial pH of the reaction was 0.4, and the starting algae contained 10-25% lipid content. The resulting recovered biodiesel indicated that the contained oil was completely converted to the methyl ester. The percent conversion of oil to fatty acid methyl ester was greater than 95%.