An Aspergillus oryzae whole-cell biocatalyst which coexpresses Fusarium heterosporum lipase (FHL) and mono- and di-acylglycerol lipase B (mdlB) in the same cell has been developed to improve biodiesel production. By screening a number of transformants, the best strain was obtained when FHL gene was integrated into A. oryzae chromosome using (S)C selection marker while mdlB was integrated using niaD selection marker. The reaction system using the lipase-coexpressing whole-cells was found to be superior in biodiesel production to others such as lipase-mixing and two-step reactions, affording the highest reaction rate and the highest ME content (98%). Moreover, an ME content of more than 90% was maintained during 10 repeated batch cycles. The whole-cell biocatalyst developed in this work would be promising biocatalysts for efficient biodiesel production. (C) 2011 Elsevier Ltd. All rights reserved.