The depletion of fossil fuel reserves is posing a significant challenge in meeting the increasing energy demands. In response to concerns related to pollution, global warming, and rising oil costs, the exploration for alternative energy sources has gained momentum. Among these alternatives, macroalgae has emerged as a promising renewable energy option. Furthermore, various alternative fuels, such as hydrogen, natural gas, propane, ethanol, methanol, butanol, vegetable and waste-derived oils, and electricity, can be utilized either in a standalone fuel system or in combination with conventional fuels like gasoline, diesel, and petrol within hybrid-electric or flexible fuel systems. A particularly noteworthy advancement in next-generation biofuels is the production of biofuels derived from microalgae. Although further research is required to optimize algae production methods, equal attention must be given to downstream processing, particularly the generation of biofuels. In the face of the severe global consequences associated with the fossil fuel energy crisis, biofuels are progressively establishing themselves as a potent and sustainable source of renewable energy.