Due to diminishing petroleum reserves and deleterious environmental consequences of exhaust gases from fossil-based fuels, research on renewable and environment friendly fuels has received a lot of impetus in the recent years. However, the availability of the non-edible crops serve as the sources for biofuel production are limited and economically not feasible. Algae are a promising alternative source to the conventional feedstocks for the third generation biofuel production. There has been a considerable discussion in the recent years about the potential of microalgae for the production of biofuels, but there may be other more readily exploitable commercial opportunities for macroalgae and microalgae. This review, briefly describes the biofuels conversion technologies for both macroalgae and microalgae. The gasification process produces combustible gases such as H₂, CH₄, CO₂ and ammonia, whereas, the product of pyrolysis is bio-oil. The fermentation product of algae is ethanol, that can be used as a direct fuel or as a gasohol. Hydrogen can be obtained from the photobiological process of algal biomass. In transesterification process, algae oil is converted into biodiesel, which is quite similar to those of conventional diesel and it can be blended with the petroleum diesel. This study, also reviewed the production of high value byproducts from macroalgae and microalgae and their commercial applications. Algae as a potential renewable resource is not only used for biofuels but also for human health, animal and aquatic nutrition, environmental applications such as CO₂ mitigation, wastewater treatment, biofertilizer, high-value compounds, synthesis of pigments and stable isotope biochemicals. This review is mainly an attempt, to investigate the biorefinery concept applied on the algal technology, for the synthesis of novel bioproducts to improve the algal biofuels as even more diversified and economically competitive.

The employment of a high-value, co-product strategy through the integrated biorefinery approach is expected to significantly enhance the overall commercial implementation of the biofuel from the algal technology.