Over the past century, the majority of chemical and energy needs of our industrial society has originated from fossilized carbon sources (coal, crude oil, natural gas). Increasingly, there is a realization that utilization of the fossilized carbon sources has adverse environmental consequences in the form of increasing concentration of greenhouse gases. We are also becoming aware of the limited nature of these resources. As a result, considerable efforts are being made to produce chemicals...

Algae offer potential to produce renewable chemicals and fuels using solar energy and carbon dioxide from atmosphere or in flue gases while simultaneously reducing the generation of greenhouse gases. Since these can be grown on marginal lands with micronutrients and macronutrients often present in waste streams, algae-based chemicals and fuels do not compete with foods. Still large-scale production of algae-based fuels and chemicals faces considerable technological and economical challenge...