A low cost method to convert triglycerides to biodiesel by transesterification reaction has been investigated. The new approach is based on controlled feeding of oil into a pool of alcohol allowing easy dispersion of oil creating large interfacial area for mass transfer. It also enabled equilibrium constants to shift in the forward direction due to excess of alcohol in the dispersion. As a result product yield higher than 95% could be achieved at lower energy input compared to conventional method. Comparisons made with conventional batch and co-solvent enabled method show differences and highlight improvements. Reactions were conducted in one liter reactor at various residence time, temperature and molar ratio of canola oil with methanol in presence of potassium hydroxide as the catalyst. Samples were collected at regular intervals and analyzed by gas chromatography (GC) to determine the reaction progress. (C) 2012 Elsevier Ltd. All rights reserved.