To enhance the economic feasibility of microalgal biorefinery, every cell components of microalgae need to be utilized as much as possible. However, after lipid extraction a significant amount of residual biomass is generated as waste product. Since the residual biomass contains a large amount of carbohydrates, it can be used for the production of bioethanol. A number of investigations on saccharification and fermentation of microalgae and macroalgae biomass for bioethanol production have been performed using different techniques [24] and [25]. However, only limited information is available on the saccharification and fermentation of microalgal residual biomass after the lipid extraction process. Also, there is not much information available on biofuels production from Scenedesmus bijugatus. The major objectives of this investigation were to [1] evaluate the biomass productivity of S. bijugatus – a native fresh water isolate cultivated in a custom made vertical tubular photobioreactor [2] assess a two-step combined harvesting technique for separation of algal biomass [3] study sequential stages of esterification and then transesterification to convert the free fatty acids (FFA) and triglycerides into biodiesel [4] investigate the potential of lipid extracted algal biomass for bioethanol production. The outcome of this investigation will be helpful in developing an integrated approach for sustainable production of biofuels (biodiesel and bioethanol) in a biorefinery in future.