Abstract: Owing to its location at low latitude area, abundant heat and light, various climate types and site conditions, dry-hot valleys in Yunnan are rich in plant species including woody biodiesel species.Based on a thorough analysis on regional climate, soil and flora in dry-hot valleys, the potential of industrial exploitation of woody biodiesel species in the dry-hot valleys was elucidated which will provide scientific foundation for making Yunnan a key woody biodiesel producer in China.

Key words: dry-hot valleys, woody biodiesel species, potential of industrial exploitation