Previous studies demonstrated that the oleaginous yeast Rhodotorula glutinis produces about 50% of its dry weight as lipids in glucose rich and nitrogen limited environment and could be used for biodiesel production.  The use of waste paper as carbon source helps getting the glucose rich environment needed through a hydrolysis process.  Since the ink embedded in waste paper cannot be economically removed by hydrolysis, this study focused on determining the effect of 1,3-Dimethyl-2-imidazolidinone (a major component of black printing dyes) in lipid production of R. glutinis.  Cultivation of this yeast at 30°C under nitrogen limited conditions and glucose concentration of 60 grams per liter results in production of 53-55% dry cell weight as lipids for control cultures after 144 hr.  Same conditions were used for experimental cultures, but with concentrations of 1.0 and 0.5M of 1,3-Dimethyl-2-imidazolidinone.  This ink component at 1M decreases lipid production of R. glutinis by 5%.  The lipid profile obtained indicates that at 1M the ink component affects the yeast's metabolism decreasing the saturated lipid obtained by 4.5%.  At concentration of 0.5M, appreciable effects on the yeast's metabolism were not observed.  Significant percents of lipids were obtained from the yeast recommending this method for biodiesel production from waste paper.