This research demonstrated hydrolysis of wet microalgal lipid and esterification of free fatty acid (FFA) using acid in one-step process. The investigation of simultaneous hydrolysis-esterification (SHE) of wet microalgal lipid was conducted by using L-27 orthogonal design and the effects of water content, volume of sulphuric acid, volume of methanol, temperature and time on SHE were examined. As a result, water content was found to be the most effective factor. The effects of various parameters on fatty acid methyl ester (FAME) content and equilibrium relation between FAME and FFA were also examined under water content 80%. Equimolar amounts of sulphuric acid and hydrochloric acid showed similar results. This method has great potential in terms of biodiesel production from microalgae since no organic solvents are used. (C) 2013 Elsevier Ltd. All rights reserved.