Catalytic reactive distillation (RD) offers novel opportunities for manufacturing fatty acid alkyl esters involved in specialty chemicals and at a larger scale in biodiesel. The integration of reaction and separation into one RD unit, corroborated with the use of a heterogeneous catalyst, provides major benefits such as low capital investment and operating costs. This work presents a novel heat-integrated process based on reactive distillation that aims to reduce furthermore the energy requirements for biodiesel production, leading to competitive operating costs. Despite the high degree of integration, the process is well controllable using an efficient control structure proposed in this work. Rigorous simulations embedding experimental results were performed using computer aided process engineering tools, such as AspenTech Aspen Plus and Aspen Dynamics. The RD column was simulated using the rigorous RADFRAC unit with RateSep (rate-based) model, and explicitly considering three phase balances. Steady-state and dynamic simulation results are given for a plant producing 10 ktpy fatty acid methyl esters (FAME) from methanol and waste vegetable oil with high free fatty acids (FFA) content, using sulfated zirconia as green catalyst. The heat-integrated RD process eliminates all conventional catalyst related operations, efficiently uses the raw materials and the reactor volume offering complete conversion of the fatty acids and allowing significant energy savings. Remarkably, compared to previously reported RD processes, the energy requirements of this process are about 45% lower - only 108.8 kW h/ton biodiesel - while the capital investment cost remains the same as no additional equipment is required. (C) 2011 Elsevier B.V. All rights reserved.