The residue after brewing the coffee grounds is an oil-containing waste material and has a potential to be used as a biodiesel feedstock. Waste coffee grounds contains 12–16% db oil and >50% moisture [1] and [2]. Biodiesel production from waste coffee ground oil involves collection and transportation of coffee residue, drying, oil extraction and biodiesel production. Traditionally, coffee is brewed and consumed fresh. Collection and transportation of waste coffee grounds before oil extraction would be the major challenges of biodiesel production from the waste coffee oil. However, emergence of a world market for ready-to-drink or packaged coffee drinks during the last decade does not require the collection and transportation of waste coffee grounds. Beverage companies produce the packaged coffee products at their relatively large production facilities and use their logistics and distribution networks to market the coffee products. Processing the waste coffee ground at a nearby location where the packaged coffee drink products are produced would eliminate the requirement for collection and transportation of this waste material for biodiesel production. In addition to collection and transportation, drying before oil extraction from waste coffee grounds using conventional processes is another time and energy consuming process. Using wet extraction techniques such as two-phase oil extraction eliminates requirement of drying wet materials before oil extraction.