Lignocellulosic biomass has high potential for use as a carbon substrate in microbial fermentation. However, the generation of various lignin-derived phenolic compounds, benzoic acids, and carbohydrate-derived furan aldehydes poses a major bottleneck. In this study, wheat straw was subjected to sequential alkaline wet oxidative pretreatment (AWOP) and acid hydrolysis to extract hemicellulose sugars. After statistical optimization, 251.50 mg/g total sugar (228.57 mg/g pentose, 22.93 mg/g hexose) and 19.64 mg/g hydrolysis by-products were achieved, with a theoretical pentose recovery of 89.57% and residual cellulose of 72.1%. The lignin-rich and carbohydrate-rich liquids from the AWOP treatment and acid hydrolysis, respectively, were valorised to produce squalene and branched chain fatty acid rich lipid using Lentibacillus salarius BPIITR. The lipid of 100.9 ± 3.53 and 235.75 ± 10.39 mg/g of dcw rich in squalene up to 3121.17 ± 25.49 and 676.41 ± 134.27 μg/g of lipid was produced in AWOP and acid hydrolysate, respectively. In the AWOP hydrolysate, lignin content was reduced by 63.78%, compared to a 40.18% reduction in the acid hydrolysate. GC-MS analysis of the lignin monomer and metabolites suggests the potential influence of lignin monomers on the biosynthetic pathway of squalene and carbohydrate content on the branched chain fatty acids accumulation in the halophilic bacterial lipid of L. salarius BPIITR.
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