Fat, oil and grease (FOG) recovered by the oil/water separator of a wastewater treatment plant (WWTP) were sampled, characterized, activated and converted into biofuel. Free acids (50–55%) and fatty soaps (26–32%) not only composed the main components, but they were also easily separable from the starting waste. The respective free fatty acid profiles were gas-chromatographically evaluated, interestingly verifying that free acids had a different profile (mainly oleic acid) with respect to the soapy fraction (saturated fatty acids were dominant). The inorganic composition was also determined for soaps, confirming that calcium is the most commonly present metal. The chemical activation of this fatty waste was made possible by converting the starting soaps into the respective free fatty acids by using formic acid as activator, coproducing the relevant formates. The activated fatty matter was then converted into biofuel through direct esterification under very mild conditions (345 K, atmospheric pressure) and obtaining thermodynamic conversion in less than 2 h. The process was easily scaled up, isolating at the end pure biodiesel (purity > 96%) through distillation under vacuum, providing a final product conformed to commercial purposes.