The present invention provides methods of processing a biomass, e.g., for producing lipid and non-lipid materials, by inducing autolysis of a biomass. The biomass may be generated using any species of microorganism and any available biodegradable substrate, including waste materials. The lipid and non-lipid materials are present in two separate layers of the autolysate, and they can be used to generate valuable products such as biofuels and nutritional supplements. The present invention further provides a processing apparatus useful for practicing the methods of the present invention.