Lipids provide stored energy, are essential components of cell membranes and are the building blocks of certain hormones. Dietary lipids are insoluble in water and cannot be utilized by the body unles...Lipids provide stored energy, are essential components of cell membranes and are the building blocks of certain hormones. Dietary lipids are insoluble in water and cannot be utilized by the body unless broken down into smaller molecules. The body digests lipids by breaking them down into tiny components by emulsification with bile salts and by enzymes called lipases. The emulsification of lipids occurs in the small intestine. Draw a line at the 1 cm mark and the 2 cm mark on 2 test tubes.