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India is a peninsular that is, it is surrounded by sea on three sides so it is the best source of microalgae. Also as the fossil fuels are getting exhausted there is a great need of an alternative. Day without fuels cannot be even imagined. Global warming problem can only be solved by using biofuel which is renewable and causes less pollution. Agricultural crops cannot produce biofuels in sufficient amounts as compared to microalgae. For biodiesel production from micro algae, it must be cultivated under some specific conditions. Still many modifications and precautions are required to carry out the work successfully and combination of new technologies will ultimately make biodiesel production from micro algae a cost-effective fuel. When this finally happens, micro algae could provide enough biodiesel to fuel the world.