Biorefinery approach is introduced for the biodiesel production by utilizing low cost raw material, such as rice bran oil (RBO). The valorization of RBO was carried out by homogeneous transesterification process using response surface methodology (RSM) based on a two-variable central composition design (CCD). The process variables, temperature and catalyst concentration were found to have significant influence on biodiesel yield. The optimum combination derived via RSM for high ester yield (99.4%) was found to be 0.75% wt catalyst concentration at a reaction temperature of 45 C. As biodiesel chemically is a long-chain alkyl methyl esters, its long-term fuel properties have become of great concern to the fuel industry. In order to determine the effects of long storage on oxidation stability, RBO biodiesel sample was stored for 24 months and the different physical chemical properties were checked with respect to time. The results show that the acid value (AV), peroxide value (PV), and viscosity (v) increased while the iodine value (IV) decreased. Based on results, correlations were obtained in terms of AV, IV, PV and v as a function of time. Those correlations can be used to predict how long time biodiesel can safely be stored. AV, IV and PV of the biodiesel sample which was stored were within the limits in European biodiesel specifications (EN 14214). (C) 2012 Elsevier Ltd. All rights reserved.