Algae fuel, also called as algal fuel or second-generation biofuel, is a biofuel which is derived from algae. During the process of photosynthesis, algae and other photosynthetic organisms capture carbon dioxide and sunlight and convert it into oxygen and biomass. Biofuel from algae could be a meaningful part of the solution in the future because of its potential as an economically viable and low emissions transportation fuel.
High oil prices, competing demands between foods and other biofuel sources, and the world food crisis, have ignited interest in alga culture i-e, farming algae. Algae fix the sunlight and carbon dioxide into energy very speedily. Algae are more suitable over other bio-fuels because algae can grow anywhere. Practically they can grow anywhere, in sea-water or salty water or polluted water or even in sewage. Even they have the ability to bear extreme temperature.