Brazilian government has established a regulation that imposes the commercialization of diesel blended with 3% of biodiesel by volume. Castor oil has being considered an option to guarantee the supply of biodiesel needed. For this reason, in this work, a continuous biodiesel plant was designed and simulated in HYSYS simulator using castor oil as feedstock. The developed process was capable of producing biodiesel at high purity using an alkali catalyst. Material and energy flows, as well as sized unit operations were used to conduct an economic assessment of the process. Total capital investment, total manufacturing cost and after annual equivalent cost were also calculated. A study of production costs was performed considering the fluctuations of the raw material prices and the glycerin purification step. (C) 2009 The Institution of Chemical Engineers. Published by Elsevier B.V. All rights reserved.