Renewable energy has been recognized as an alternative to fossil fuels as a step to transform the energy produced and consumed worldwide. Cyanobacteria and microalgae are currently being considered as substitutes to the traditional feedstock used to produce biofuels due to their ability to achieve high amounts of lipids under cellular stress conditions. The aim of this study was to investigate the utilization of Tolypothrix sp. CACIAM 22 cyanobacterial biomass as a feedstock for biodiesel production, specifically by examining the effects of supplementing with hydrolysate of Brazil nutshell (HBNS) on biomass generation, lipid production, fatty acid composition, and quality of synthesized biodiesel. The supplementation of HBNS led to a significant increase of 12g.L−1 in wet biomass production. The lipid content reached 41 % of the biomass produced in HBNS supplemented cultures when nitrate source was deprived. The quality evaluation of cyanobacteria-derived biodiesel was performed using Biodiesel Analyzer ver 2.2 software, revealing superior quality compared to biodiesel produced from plant sources. The biodiesel exhibited values of 23 h for oxidative stability, 65 for cetane number, and an iodine index of 31 (g I2. 100 g−1fat), indicating promising potential as a renewable source. This study is the first to utilize HBNS as an organic supplement for cyanobacteria culture medium and assess its impact on biomass and lipid production in Tolypothrix sp., supporting the hypothesis of utilizing this biomass as a renewable feedstock for biodiesel production as a viable alternative to plant sources based on biomass production, lipid productivity, and biodiesel quality.