While oleaginous yeasts have been extensively investigated for single-cell oil production, less attention has been paid towards valorization of the erstwhile-discarded de-oiled biomass. The current study demonstrates the valorization potential of the de-oiled biomass through production of bio-crude by hydrothermal liquefaction process. The performance of the process was enhanced by using glycerol as co-solvent and also by optimizing the processing conditions. Glycerol addition enhanced the bio-crude yield up to 50 wt% with an improved energy content of 32 MJ/kg. The major organic groups found in the bio-crude are acids, esters and phenolics. Typical energy recovery achieved in bio-crude was in the range of 43–62%. Thus, strategic valorization of yeast into green crude with net energy gain, as evident from the energy balance, implies the process is energetically favourable. © 2019 Elsevier Ltd