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Abstract
Blinded use of fossil fuels have led to a drastic change in the facet of the world during the last few decades. Rising fuel prices, increases global warming and increase in the tension amidst the countries have led to a sharp rise in the valuation of crude oil which hitherto has acted upon as the driving fuel behind the transport sector. This has led to a mass search for any type of alternative in the course of fuel.This has been narrowed down to biofuels which are derived biologically. Among the various generation of fuels(which has been described further) has further focused the researchers over the use of microalgae which due to ita chemical composition has attracted the entire scientific community. Easy and bulk availability are add on. The paper discusses the use and scope of micro algae for deriving biofuel and processing bio diesel from it.