Continuous use of fossil fuels is the major contributor of greenhouse gas emissions, which requires developing the alternate green sources of energy that should be sustainable and environmentally friendly. Biodiesel, fatty acid methyl esters (FAMEs), has grabbed great attention due to the advantages such as: it is renewable, sustainable, environmentally friendly (burns much cleaner than petroleum diesel), compatible with current commercial diesel engines, as well as has excellent lubricity and could provide energy density similar to diesel. As a feasible energy source, biodiesel production should be a sustainable and energetically favourable process (the difference between the energy output and the energy input is positive) (Thamsiriroj and Murphy, 2011; Zhang et al., 2013). Current biodiesel feedstock like agriculture, fossils and wood cause environmental concerns like global warming, greenhouse gas emission and also leads to fast depletion of natural resources like deforestation. The soaring price of edible oil leads to biodiesel production unaffordable and present feedstock sources for fuel production. Moreover, some researchers have reported that biodiesel produced from two major raw materials, soybean and sunflower oils, was energetically unfavorable due to the low oil yield of the crops (energy loss of 32% for soybean and 118% for sunflower) (Pimentel and Patzek, 2005). Therefore, it has forced the researchers and engineers to search for replacement of the traditional oils and lipids as raw materials, which should be abundant, sustainable, and energetically favorable (positive energy balance). Oleaginous microorganisms have shown a great advantage as lipid source due to their faster growth rate and high lipid contents (up to 80% microorganism dry weight) compared to oilseed crops and animals (Gouda et al., 2008). However, techno-economic evaluation of microbial oil production using glucose as media revealed that unit production cost of biodiesel using microbial oil production with glucose as substrate was estimated to be $5.9/kg while commercial biodiesel price was $1.2/L (Apostolakou et al., 2009). Since biodiesel with microbial oil technology with glucose as substrate is an expensive process, alternatives for inexpensive sources should be looked upon. Recently biodiesel production has been reported using renewable waste sources such as crude glycerol and municipal sludge (