This paper will discuss the potential of rotating tube reactor technology for performing transesterification of canola oil using a base catalyst. Rotating tube reactor uses centrifugal force to create thin, intensely mixed liquid films and is capable of delivering high heat and mass transport rates. Using methanol and sodium hydroxide as catalyst, tests have been performed to investigate the influence of rotational speed, flow rate, temperature and catalyst concentration on the reaction rate and the quality of biodiesel in terms of bound glycerol. Atmospheric pressure and low operating temperature (40- 60 degree C) have been used to achieve conversions in excess of 98% in residence times of 40 seconds. In this presentation, explanation of the high rate of reaction will be discussed and the potential for scale up and implications in terms of energy efficiency of biodiesel process plant will be discussed.