NOVELTY - An oleaginous bacterial cell, where genes encoding at least one endocellulase, exocellulase and cellobiase activity operably linked to a suitable promoter sequence have been introduced, is new.    USE - For producing lipid (claimed), biofuels, biodiesel, renewable diesel, jet fuel and gasoline.    ADVANTAGE - The cell provides renewable low cost substrate; allows consolidated bioprocessing of cellulosic materials for production of single cell oil for biofuels, thus omits or decreases the use of externally produced enzymes and can result in significant improvements in cost-efficiency; and utilizes cellulosic carbon source or cellobiose in lipid production, this results that easily available and renewable cellulosic materials can be used as a carbon source in lipid production without expensive separate hydrolysis to disaccharides and monosaccharides typically utilized by bacterial cells accumulating lipids.    DETAILED DESCRIPTION - INDEPENDENT CLAIMS are included for the following:    (1) lipid production (M1) involving a) providing a culturing medium where at least part of the carbon source is in cellulosic form; b) providing a bacterial strain capable of expressing and secreting at least one cellulolytic activity/cellulolytic activity; c) contacting the medium and the strain; d) cultivating the medium and the strain in conditions allowing expression of the cellulolytic activities; e) providing (i) the cellulolytic bacterial strain of (b) being oleaginous, or (ii) another oleaginous bacterial strain genetically modified to use cellobiose as a carbon source; f) contacting the culturing medium of step (c) or the spent culturing medium obtained from step (c) with the strain; g) cultivating the strain in conditions allowing lipid production; and h) recovering the lipids; and    (2) lipid production (M2) involving contacting the cells of an oleaginous bacterial strain, where genes encoding at least one cellobiase activity and optionally cellobiose sugar transporter(s) operably linked to a suitable promoter sequence have been introduced, with a culture medium where at least part of the carbon source is cellobiose, preferably cellobiose from hydrolysis of cellulosic substrate; cultivating the cells of the bacterial strain in conditions allowing the lipid production; and recovering the lipids.