Membrane separation technology was used to remove free glycerol from biodiesel in order to meet the ASTM D6751 and EN 14214 standards. Fatty acid methyl esters (FAME) produced from canola oil and methanol were purified using ultra-filtration. The effect of different materials present in the transesterification reaction, such as water, soap, and methanol, on the final free glycerol separation was studied. A modified polyacrylonitrile (PAN) membrane, with 100 kD molecular weight cut-off was used in all runs. Tests were performed at 25 degrees C and 552 kPa operating pressure. The free glycerol content in the feed, retentate and permeate of the membrane system was analyzed using gas chromatography according to ASTM D6584. Results showed low concentrations of water had a considerable effect in removing glycerol from the FAME even at approx. 0.08 mass%. This is four orders of magnitude less than the amount of water required in a conventional biodiesel purification process using water washing. It is suggested that the mechanism of separation of free glycerol from FAME was due to the removal of an ultrafine dispersed glycerol-rich phase present in the untreated FAME. This was confirmed by the presence of particulates in the untreated FAME. The size of the particles and the free glycerol separation both increased with increasing water content of the FAME. The trends of separation and particle size vs. water content in the FAME phase were very similar and exhibited a sudden increase at 0.08 mass% water in the untreated FAME. This supports the conclusion that water increased the size of the distributed glycerol phase in the untreated FAME leading to its separation by the ultra-filtration membrane. The technology for the removal of free glycerol from biodiesel was found to use 2.0 g of water per L of treated FAME (0.225 mass% water) vs. the current 10 L of water per L of treated FAME. (C) 2010 Elsevier Ltd. All rights reserved.