In order to examine the industrial potential to indirectly isolate phytosterols from deodoriser distillates (DODs), enzymatic transesterification of an industrial rapeseed and soybean oil DOD mixture with bioethanol was investigated using commercial lipases and a few newly immobilised preparations of lipases. The lipases from different sources and differing preparation forms were evaluated, in terms of thermostability, enzyme efficiency, and toleration of ethanol. Lipozyme 435 and Lipozyme NS-40044 TLL were found to be most effective biocatalysts in catalysing ethanolysis of glycerides and steryl esters from DODs. The optimum conditions are 10% enzyme load (wt% of DODs), ethanol/DODs of 3.0:1.0 (mol/mol), water content 0.125% (based on the weight of total mixture), and reaction at 30 degrees C for 5 h. The results demonstrated that >95% sterols can be recovered as free form (>85% sterol esters were liberated as free sterols within 4h). With this process, the system was simplified as fatty acid ethyl esters and free sterol as major components, where free sterols can be recovered via solvent extraction or molecular distillation. Furthermore, a reuse study of enzyme in consecutive batch reactions demonstrated an excellent operation stability and reusability of Lipozyme 435 and Lipozyme NS-40044 TLL with the developed process. This work indicated that the industrially refined waste DODs can be directly subjected to an enzymatic process for high efficacy recovery of phytosterol without any pre-process, driven by robust lipase preparations. (C) 2012 Elsevier Ltd. All rights reserved.