The growing energy needs and depleting fuel sources compel us to look towards production of biodiesel, an appropriate alternative. The industrially used chemical catalysis process is beset with problems that enzymatic production using lipases could avoid. In this light, the immobilization of lipases plays an important role in the optimization of the production process. This review discusses the various techniques that have been studied for lipase immobilization, namely adsorption, covalent attachment, entrapment, cross-linked enzyme agglomerates and whole-cell biocatalysts, while highlighting their benefits and drawbacks. It also sheds light on the future of enzyme immobilization and its industrial application.