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An economically pertinent process for the lipase‐catalyzed synthesis of amides was developed. A continuous plug flow reactor was used. The model reaction was the production of oleamide, a lubricant and anti‐slip agent, via direct Candida antarctica lipase B‐catalyzed amidation of oleic acid with ammonia. Of all solvents tested, 2‐methyl‐2‐butanol was found to respond optimally to the demands formulated in our specifications. A continuous conversion of oleic acid into oleamide of 85% was obtained. A productivity of 4.5 tons oleamide per kg of enzyme per year was calculated, indicating a contribution of enzyme to the product price of only 4%. The volumetric productivity, 100 g · L⁻¹ · h⁻¹, is 4 to 100 times higher than in literature procedures. A simple crystallization procedure leads to 99% purity. © 2003 Wiley Periodicals, Inc. Biotechnol Bioeng 82: 664–669, 2003.