A nonrenewable fuel like petroleum has been used from centuries and its usage has kept on increasing day by day. This also contributes to increased production of greenhouse gases contributing towards global issues like global warming. In order to meet environmental and economic sustainability, renewable, carbon neutral transport fuels are necessary. To meet these demands microalgae are the key source for production of biodiesel. These microalgae do produce oil from sunlight like plants but in a much more efficient manner. Biodiesel provides more environmental benefits, and being a renewable resource it has gained lot of attraction. However, the main obstacle to commercialization of biodiesel is its cost and feasibility. Biodiesel is usually used by blending with petro diesel, but it can also be used in pure form. Biodiesel is a sustainable fuel, as it is available throughout the year and can run any engine. It will satisfy the needs of the future generation to come. It will meet the demands of the future generation to come.