China is the No.1 vegetable oil importer in the world.In 2009, China imported 9.4 and 45 million tons of vegetable oil and oil seeds, respectively, according to the Ministry of Agriculture.As it is prohibitive to allocate major land resource in China for seed oils, and traditional oils and fats industry is developing constantly, lipid resource became the bottleneck for a sustainable biodiesel and related industry in the future.Biomass is a major bioenergy and carbon resource.About 0.7 billion tones of agricultural residues and 0.3 billion tones of forest residues are produced annually in China.These materials are consisted of cellulose, hemicellulose and lignin, and can be converted into hydrolysates.The presence of both hexoses and pentoses, and inhibitory components makes biomass hydrolysates unique and challenging for an efficient microbial conversion to biofuels and bio-based products.