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The purpose of the Central Esterification Unit (CEU) is to convert free fatty acids (FFA), which are present in the raw material, into biodiesel by using heterogeneous catalyst and methanol. The concentration of FFA in used oil could reach a maximum of 50 % and be processed efficiently by this unit. Aging of the raw material may cause a rise in the acidity during storage. Hence it should be processed through the CEU in order that the acidity does not rise above the maximum allowed value.