To reduce the cost of algal-based biodiesel, a waste material from oil industry, Cyperus esculentus waste, was used as the carbon source of the oleaginous microalgae Chlorella vulgaris. It demonstrated that C vulgaris grew better in C esculentus waste hydrolysate (CEWH1) than in glucose medium under the same reducing sugar concentration. CEWH concentration influenced the cell growth and lipid production significantly. The maximum lipid productivity 438.85 mg l(-1) d(-1) was achieved at 40 g l(-1). Fed-batch culture was performed to further enhance lipid production. The maximum biomass, lipid content and lipid productivity were 20.75 g l(-1), 36.52%, and 621.53 mg l(-1) d(-1), respectively. The produced biodiesel was analyzed by GC-MS and the results suggested that lipids produced from CEWH could be a potential feedstock for biodiesel production. (C) 2013 Elsevier Ltd. All rights reserved.