Sustainable biodiesel production can be performed using oil palm as a single feedstock. In this work the integrated biodiesel and bioethanol production has been evaluated considering two alternatives for the raw ethanol to be used in the process. First way uses two lignocellulosic residues from palm industry: empty fruit bunches and palm press fiber. The second way includes direct fermentation of glycerol obtained as co-product on biodiesel production. Process simulation and economic evaluation were carried out based on experimental studies using Aspen Plus and Aspen Icarus, respectively. Productivity, availability and sale costs taken from Colombian oil palm industry were considered in this evaluation. Results show that in situ production of ethanol from glycerol and biomass could be considered as feasible and sustainable in the biodiesel industry based on oil palm. This integrated process is an important proposal solving problems of traditional non renewable methanol. Additionally the ethanol can be completely self-supplied by the process without low cost glycerin production and food competition