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Microalgae offer a great potential to contribute significantly as renewable fuels and documented as a promising platform for algae-based bio refineries. They provide solutions to mitigate the environmental concerns posed by conventional fuel sources; however, the production of microalgal biofuels in large scale production system encounters few technical challenges. High quantity of nutrients requirements and water cost constrain the scaling up microalgal biomass to large scale commercial production. Crop protection against biomass losses due to grazers or pathogens is another stumbling block in microalgal field cultivation. With our existing technologies, unless coupled with high-value or mid-value products, algal biofuel cannot reach the economic target. Many microalgal industries that started targeting biofuel in the last decade had now adopted parallel business plans focusing on algae by-products application as cosmetic supplements, nutraceuticals, oils, natural color, and animal feed. This review provides the current status and proposes a framework for key supply demand, challenges for cost-effective and sustainable use of water and nutrient. Emphasis is placed on the future industrial market status of value added by products of microalgal biomass. The cost factor for biorefinery process development needs to be addressed before its potential to be exploited for various value-added products with algal biofuel.

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