Modeling and understanding reaction kinetics is essential for processes and equipment design. This paper presents a kinetic analysis of the transesterification reaction of palm oil extracted in the Colombian north coast with ethanol to produce biodiesel. The analysis is based in actual lab scale production and it considers a set of three reactions in a batch reactor with dynamic behavior. It was found that the kinetics does not adjust to the common Arrhenius equation model, therefore an extended Arrhenius equation model was proposed. This extended model captures temperature effects better than the standard Arrhenius form. New reaction constants were found using computer-based regression analysis, and the model was later used to simulate a continuous biodiesel production plant.