AbstractRapid changes in the global climate resulting from anthropogenic activities and greenhouse gas emissions from fossil resources are encouraging commercial and academic research to seek out new routes for the production of sustainable fuels. Biodiesel, as a renewable fuel, has long been recognized as one of the solutions to meet energy demand in a climate‐constrained world. Although, several routes have been devised for biodiesel production, the enzymatic route has attracted substantial research interest. Here we discuss enzymatic esterification / transesterification technology and its contribution to the green synthesis of biodiesel. This review provides a comprehensive assessment of the fundamentals of enzymatic reaction, such as the impact of different reaction components (lipase, acyl acceptor, substrate, and reaction media) on the process parameters, along with recent developments in improving enzymatic biodiesel production, such as different lipases, combinations of lipases, and two‐step methods. Kinetics and the mechanism of enzymatic reaction when lipase is used as a catalyst are also explained in greater detail. Finally, the opportunities and challenges for the development of potentially sustainable and eco‐friendly enzymatic biodiesel technology are discussed. © 2021 Society of Industrial Chemistry and John Wiley & Sons Ltd.
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