A biodiesel generation system incorporates acid esterification through a hydro-cavitation based nano reactor. A feed material is a mixture of approximately 30 percent Palm Fatty Acid Distillate (PFAD) mixed with Para Toluene Sulfonic Acid (PTSA) as an acid catalyst and methanol as a reagent. The PFAD is approximately 90 percent Free Fatty Acid (FFA) resulting in the feed material being approximately 27 percent FFA. The acid catalyst in the feed material facilitates an esterification process to produce biodiesel. The feed material is pumped through the hydro-cavitation based nano reactor and forced through a nano orifice where, by a phenomenon of hydro cavitation, collapsing nano liquid molecules can generate instantaneous temperatures of 1000 degrees centigrade resulting in quick reaction taking place at the surface of collapsing nano molecules. Partially reacted feed material may be recycled through the nano reactor several times to complete the reaction.