In this study, we have examined the kinetics of FAME recovery as influenced by temperature (60-100 °C) as well as acid (1-5% (v/v)) and biomass concentrations (6.6-25% (w/v)). Rates of reaction increased with temperature in accordance with the Arrhenius equation. Based on the fundamental acid-catalyzed transesterification mechanisms, a kinetic expression was derived. Rate data for reactions with various acid and biomass concentrations were found to be in excellent agreement with this model. An interesting observation that resulted from this study was that under appropriate conditions, the FAMEs separated out from the reaction mixture as a distinct light phase that could be easily removed. Further, the heavy phase containing acidified methanol could be reused for reacting more biomass. Overall, this process enables easy recovery of transesterified lipids by a one-step process that eliminates the need for toxic solvents and their expensive recovery. Process design is also simplified since reaction kinetics are described by rate expressions derived from first principles. Experimental results and economic analysis of the process will be presented.