A novel application of Fe-Zn double-metal cyanide (DMC) complexes as solid catalysts in the preparation of fatty acid alkyl esters (biodiesel/biolubricants) from vegetable oils is reported. The catalysts are hydrophobic (no H2O adsorption at reaction temperatures) and contain only Lewis acidic sites (NH3 and pyridine adsorption). Bronsted acid sites are absent (absence of 1546 and 1639 cm(-1) bands on adsorption of pyridine). Basic sites are also absent (no CO2 adsorption). Unlike the homogeneous or other solid catalysts (like ZnO-Al2O3, for example), the Fe-Zn, DMC catalysts are highly active even for the simultaneous transesterification of triglycerides and esterification of the free fatty acids (FFA) present in unrefined and waste cooking oils as well as non-edible oils. They are also tolerant of water, probably, due to their surface hydrophobicity. A relationship between the transesterification activity and the concentration of strong Lewis acid sites has been observed. Coordinatively unsaturated Zn2+ ions in the structure of the Fe-Zn complex are the probable active sites. (c) 2006 Elsevier B.V. All rights reserved.