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The article describes environmental aspects of the impact of traditional energy sources on the environment. It is substantiated that energy needs and environmental problems lead to the search for alternative renewable fuels. A comparative analysis of the structure of general supply between traditional and alternative energy sources is done. The current state of production and use of traditional fuels and prospects for the production of biofuels in Ukraine are analyzed. The projected structure of the use of traditional and alternative fuels according to the Energy Strategy of Ukraine until 2035 «Safety, energy efficiency, competitiveness» is presented.The classification of biofuels is provided depending on raw materials: first, second and third generation. Unlike biofuels from crops such as sugar cane and corn (first-generation biofuels), as well as animal and vegetable wastes (second-generation), algae-derived fuels (third-generation biofuels) have many benefits. In particular, this is a greater potential for biofuel production compared to previous systems: a variety of possible fuels (biodiesel, bioethanol, biobutanol, biogas and even jet fuel); flexible production technologies. Algae cultivation technologies have been studied: especially cultivation in open reservoirs or in more advanced closed ponds and bioreactors. It is substantiated that algae are most often used for biodiesel production; a comparison of different technologies for its production is made. The foreign experience of algae biofuel production and its usage by various automobile companies and enterprises, as well as the prospects of algae biofuel production in Ukraine are presented. Despite the prospects for the production of the third-generation biofuels, there we think, that the issue of investigation has been not been studied properly by scientists and Ukrainian producers don’t have basic knowledge.

BIOFUELS FROM ALGAE AS A DIRECTION FOR THE DEVELOPMENT OF THE «GREEN» ECONOMY: THE CURRENT STATE AND PROSPECTS