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Microalgal oil is currently being considered as a promising alternative feedstock for biodiesel. The present demand for oil for biofuel production greatly exceeds the supply, hence alternative sources of biomass are required. Microalgae have several advantages over land-based crops in terms of oil production. Their simple unicellular structure and high photosynthetic efficiency allow for a potentially higher oil yield per area than that of the best oilseed crops. Algae can be grown on marginal land using brackish or salt water and hence do not compete for resources with conventional agriculture. They do not require herbicides or pesticides and their cultivation could be coupled with the uptake of CO2 from industrial waste streams, and the removal of excess nutrients from wastewater (Hodaifa et al., 2008; An et al., 2003). In addition to oil production, potentially valuable co-products such as pigments, antioxidants, nutraceuticals, fertilizer or feeds could be produced (Mata et al., 2010; Rodolfi et al., 2009). Despite these advantages, algal fuel is not currently in widespread use, largely due to its high cost of production (Chisti, 2007; Miao & Wu, 2006). Despite strong interest from the commercial and scientific sectors, there are currently no industrial facilities producing biodiesel from algae (Lardon et al., 2009). One of the major economic and technological bottlenecks in the process is biomass and lipid production by the algae (Borowitzka, 1992; Sheehan et al. 1998; Tsukahara & Sawayama, 2005). Productive strains and optimized culture conditions able to produce cells with a simultaneously high growth rate and lipid content are required. The high cost and energy demand of harvesting unicellular algae also remains a major challenge. The small cell size (often < 10 m in diameter) and dilute biomass produced requires innovative solutions to minimize the consumption of water and energy as well as processing costs (Rodolfi et al., 2009). This chapter provides an overview of microalgae as a source of oil for biodiesel, focusing on:  A description of algae and their properties with regards to oil production  Requirements and key factors in microalgal cultivation  Methods and challenges in harvesting and processing of algal biomass  Economic and environmental feasibility of microalgal biodiesel  Mechanisms to enhance lipid productivity of microalgae and future research directions.

Advantages and Challenges of Microalgae as a Source of Oil for Biodiesel