This study has demonstrated that microcapsules can be used as a microreactor for the transesterification of rapeseed oil with calcium oxide (CaO) base catalyst. CaO-loaded microcapsules were prepared by coextrusion technique, and the transesterification reaction was carried out by adding methanol into the prepared microcapsules and oil in a batch-type reactor. Results showed that the microcapsules system could promote the transesterification and hinder the dissolution of the catalyst, in contrast to a biodiesel production with CaO particles. The optimal conditions for methanol to oil molar ratio, catalyst content in the microcapsules and reaction temperature were found to be 8:1, 20 wt.%, and 65 degrees C, respectively. The results of reusability tests showed that CaO-loaded microcapsules could be successfully reused for three times without loss of the catalytic activity. It was concluded from these results that microcapsules have the potential to improve the performance of solid base catalyst for biodiesel production. (C) 2012 Elsevier Ltd. All rights reserved.