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Biodiesel is an alternative fuel for diesel which is made through a chemical process which converts vegetable oils and fats of natural origin into fatty acid methyl esters (FAME). The most usual method to transform Bio-oil into biodiesel is Transesterification that can be carried out using different catalyst systems. Jatropha is second generation, non-edible oil and can be used for producing biodiesel. The Transesterification reaction consists of heating jatropha oil with proper concentration of methanol at appropriate temperature in the presence of catalyst. After reaction, the mixture is allowed to settle down for 8-10 hrs. Two separate layers, top layer of biodiesel and lower layer of glycerol will form, which can be separated. Reaction temperature, amount of methanol, catalyst and reaction time are important parameters which decide yield and quality of biodiesel.