Biofuels derived from algae offer a promising avenue for sustainable energy production. These microscopic organisms possess high lipid content, making them ideal candidates for biodiesel production. Unlike conventional biofuel crops, algae can be cultivated in a variety of environments, including wastewater ponds and saline waters, minimizing competition with food crops and freshwater resources. Additionally, algae can absorb carbon dioxide during growth, helping mitigate greenhouse gas emissions. The production process involves harvesting and extracting lipids from the algae, which are then converted into biodiesel through transesterification. With further research and technological advancements, algae-based biofuels have the potential to play a significant role in transitioning towards a cleaner and more renewable energy future.