The aim of this study is to investigate the algae production technologies such as open, closed and hybrid systems, production costs, and algal energy conversions. Liquid biofuels are alternative fuels promoted with potential to reduce dependence on fossil fuel imports. Biofuels production costs can vary widely by feedstock, conversion process, scale of production and region. Algae will become the most important biofuel source in the near future. Microalgae appear to be the only source of renewable biodiesel that is capable of meeting the global demand for transport fuels. Microalgae can be converted to bio-oil, bioethanol, bio-hydrogen and bimethane via thermochemical and biochemical methods. Microalgae are theoretically very promising source of biodiesel. (C) 2010 Elsevier Ltd. All rights reserved.