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Algal biofuels hold promise with the ability of micro-algae to photosynthetically convert carbon dioxide to biomass and other value added products. This energetically unfavorable conversion is powered by solar radiation, available at a low energy density of 20 MJ/m2.day, on an average. Several technological challenges will need to be overcome in areas such as (i) microalgal growth, (ii) harvesting and dewatering, and (iii) conversion of biomass to biofuels and valorization in a biorefinery approach.