Microalgae have potential as a feedstock for biofuel production, but integrated production systems still need improvements to be economically viable at a large scale. Key research areas that could help microalgal biofuels attain economic reality include improving strain selection, cultivation techniques, and downstream processing methods. While microalgal biofuels show promise as a renewable alternative to controversial first generation biofuels, significant advances are still needed for the industry to develop and scale up successfully.