In today’s world, the majority of the energy needed is derived from burning fossil fuels. The negative impact due to fossil fuels is heavy on the environment. The appropriate infrastructure to replace fossil fuels with more renewable and environmentally sound energy sources still being many decades away, biofuels seem like the best alternative. Biofuels emit the same amount of CO2 as regular fossil fuels, but the crops that produce biofuels consume a lot of that CO2 while growing such that the net CO2 is often negligible or zero. Algae biofuels have been found to be Carbon positive, meaning that they consume more CO2 while growing than they emit while burning. In the present review, we study the feasibility of producing biodiesel from algae.