 Microalgae have the potential to produce biodiesel without competing for arable land or natural landscapes but high lipid productivity is a prerequisite for commercial production. Environmental stresses can induce lipid biosynthesis in microalgae and several studies have been conducted to identify and develop efficient techniques for this purpose. These include nutrient stress, osmotic stress, radiation, pH, temperature, heavy metals, and other chemicals. Genetic strategies are also being developed to increase triacylglyceride production and induceability. The potential of lipid induction techniques in microalgae for commercial biodiesel production is discussed in this review. This article was authored by Kier M. Schenk, Kalpesh K. Sharma, and Holger Schumann.