Single cell oil, also known as Microbial oil consists of the intracellular storage lipids, triacyglycerols. It is similar to vegetable oil, another biologically produced oil. They are produced by oleaginous microorganisms, which is the term for those bacteria, molds, algae and yeast, which can accumulate 20% to 80% lipids of their biomass. The accumulation of lipids take place by the end of logarithmic phase and continues during station phase until carbon source begins to reduce with nutrition limitation. The most important source is some species of yeast, that are able to convert food into triglycerides and accumulate the produced lipids when fed carbohydrates. Production of microbial oil has been researched for production of biodiesel, because impure carbohydrates such as agricultural residues, e.g. waste molasses can be used as a feedstock for production of oil. Production of SCO The microbial production of SCO can be conducted by submerged (SmF) or solid state fermentation (SSF). The most frequently used carbon source is glucose. The cellular lipid contents above 60% were generated with xylose, glucose and fructose as substrates using Mortierella isabellina. The selection of a suitable carbon source is necessary but, the nitrogen source influences the accumulation of SCO. As well organic and inorganic nitrogen sources are used individually or in combination in the literature. These include yeast extract, urea, peptone, glycine, KNO3, NH4NO3, and (NH4)2SO4. The C/N ratio influences the lipid accumulation. Reported ratios range from 35 to 340 mol mol−1. In principal, oleaginous microorganisms can be cultivated as batch, fed-batch or continuous cultures. The cultivation of M. alpina in a stirred tank reactor resulted in an increase of lipid accumulated in the cells compared to shaking flasks. Disruption Cell disruption is very important, because efficiency of cell disruption directly influences subsequent downstream operations and overall extraction efficiencies. This can be achieved by mechanical and non-mechanical method. Bead Milling The cell are disintegrated by the impact of grinding beads and biomass as well as by compaction and shearing actions and the resulting energy transfer. Cell disruption by bead milling is simple, effective, and suitable for a wide range of microorganisms. Homogenization By homogenization process, biomass is forced under high pressure through an orifice. Cell disruption efficiency is dependent on applied pressure, number of passes and organisms. Ultrasound Ultrasound using frequencies around 25 kHz is another liquid-shear method which is frequently used in industries and found to be suitable for cell disruption.