Liquid biofuels like biodiesel and bioethanol are crucial in the transition to low-carbon and high-energy alternatives to fossil fuels. One significant by-product of biodiesel production is glycerol, which accounts for about 10% of the total conversion output. While waste glycerol poses challenges due to its impurities and contaminants, it also holds potential as a metabolic resource for essential cellular components in microorganisms. Crude glycerol production is reviewed, highlighting relevance in current biodiesel technologies and its biochemical composition. To efficiently utilize waste glycerol, co-valorization with low-cost substrates through biocircular platforms using various microorganisms or insects for second and third-generation oxy-biofuels has been explored. Among these, the black soldier fly larvae have demonstrated higher competitiveness for lipid contents (35–43%), making them a promising organism for recycling waste glycerol into biodiesel production, alongside microalgae and oleaginous yeast. The microbial biodiesel productivity from oleaginous yeast is notably higher (3546 kg ha⁻¹ y⁻¹) than soybean biodiesel (562 kg ha⁻¹ y⁻¹), while microalgal biodiesel productivity surpasses palm biodiesel by more than 25 times. Remarkably, black soldier fly larvae biodiesel productivity was reported to be ~ 1.7 times higher than microalgae and an impressive ~ 43 times higher than palm biodiesel. Despite their potential for biodiesel production, waste glycerol from biodiesel industry still represents a challenge because of high impurities, high viscosity, and limited direct applications in existing processes. To further enhance energy sustainability and address the challenge of waste glycerol, biocircular platforms are discussed for waste glycerol utilization with domestic wastewater sludge, lignocellulosic biomass, and protein-rich wastes. These platforms offer opportunities to create other sustainable agricultural products while minimizing their environmental footprint.