A biofuel is a fuel that contains energy from geologically recent carbon fixation and produced from living organisms. These fuels are made by a biomass conversion. This biomass can be converted to convenient energy containing substances in three different ways: thermal conversion, chemical conversion, and biochemical conversion. This biomass conversion can result in fuel in solid, liquid, or gas form. This new biomass can be used for biofuels. Bioethanol is an alcohol made by fermentation, mostly from carbohydrates produced in sugar or starch crops such as com, sugarcane, or sweet sorghum. Ethanol can be used as a fuel for vehicles in its pure form, but it is usually used as a gasoline additive to increase octane and improve vehicle emissions As the biofuel production from typical crop sources creates a challenge to human food supply market so the world is now moving towards the production of biofuel from algae. Enormous source of sea micro and macro algae illustrates a new era of altemative fuel research opportunities Among algal fuels attractive characteristics are that they can be grown with minimal impact on fresh water resources, can be produced using saline and wastewater, have a high flash point, biodegradable and relatively harmless to the environment ifspilled.