Microalgae have a potential to become a renewable resource for fuel production that does not compete with food crops and does not use large amounts of fresh water, energy, or land.
Half of biodiesel needs in the US can be supplied with microalgae grown on only 2.5% of the total cropland, compared to 24% of cropland needed for the same amount of biodiesel from palm oil (Chisti, 2007).
Microalgae can also be used to produce or supplement a wide variety of fuels, including gasoline and kerosene.