Waste cooking oil (WCO) is the residue from the kitchen, restaurants, food factories and even human and animal waste which not only harm people's health but also causes environmental pollution. The production of biodiesel from waste cooking oil to partially substitute petroleum diesel is one of the measures for solving the twin problems of environment pollution and energy shortage. In this project, synthesis of biodiesel was catalyzed by immobilized Candida lipase in a three-step fixed bed reactor. The reaction solution was a mixture of WCO, water, methanol and solvent (hexane). The main product was biodiesel consisted of fatty acid methyl ester (FAME), of which methyl oleate was the main component. Effects of lipase, solvent, water, and temperature and flow of the reaction mixture on the synthesis of biodiesel were analyzed. The results indicate that a 91.08% of FAME can be achieved in the end product under optimal conditions. Most of the chemical and physical characters of the biodiesel were superior to the standards for 0(#)diesel (GB/T 19147) and biodiesel (DIN V51606 and ASTM D-6751). (C) 2008 Elsevier Ltd. All rights reserved.