This chapter describes methods for generation of hydrolysates amenable to conversion to microbial lipids from herbaceous lignocellulosic biomass utilizing either mild alkali pretreatment with NaOH or alkaline hydrogen peroxide pretreatment with NaOH and H2O2. This pretreatment is followed by enzymatic hydrolysis of the plant cell wall polysaccharides to yield hydrolysates. These hydrolysates are composed primarily of the monosaccharides glucose and xylose as well as acetate and phenolic monomers that may all serve as a source of renewable carbon to produce microbial lipids. Application of these mild pretreatment conditions minimizes the generation of inhibitors, enabling microbial cultivations to often be performed without the need for detoxification.