Biodiesel from algal oil is widely accepted as a promising alternative to fossil fuels because of its renewability and biodegradability. This work aims to explore the techno-economic feasibility of biodiesel production through the reactive distillation (RD) route. Initially, the algal oil and biodiesel are modeled on the basis of their major constituents. The thermophysical parameters of all the constituent components are computed using the group contribution method and validated with available experimental data with reasonable accuracy. The sensitivity analysis is performed to identify the process parameters, namely, the algal oil to methanol molar ratio, the reflux ratio, the total number of trays, the number of reactive trays, and the reboiler heat duty. A maximum conversion of 99% is achieved with an algal oil to methanol molar ratio of 1:4, a reflux ratio of 2, a total number of trays of 15, 11 reactive trays, and a reboiler heat duty of 6.4 MJ/min. With this, the proposed RD column produces 65.5 mol % biodiesel at the bottom, which is quiet close to that obtained through other routes. Finally, the performance of the proposed RD column is investigated with reference to a conventional multiunit system (CMS), consisting of a reactor followed by distillation, from an economic, energetic, and environmental perspective in terms of total annual cost (TAC), energy savings, and CO2 emissions. Simulation results indicate a 52.96% savings in TAC, and 43.31 and 40.11% reductions in energy consumption and CO2 emissions are achieved using the proposed RD column with reference to the CMS.