Abstract Climate changes induced by anthropogenic greenhouse gas emissions (mainly carbon dioxide) is one of the major threats of the modern era. Primary causes are the high reliance on fossil fuels for power generation, transportation, manufacturing and the intensive land usage (deforestation). The current share of renewable biofuel production in the overall fuel demand has been found insufficient to replace fossil fuels. Microalgae can deliver a sustainable and complementary biofuel platform with some important advantages. This review aims to offer a state-of-the art review of algal biomass conversion methods into various biofuel products, including biodiesel, syngas, biogas, bioethanol. Emerging more sustainable biofuel/bioenergy production technologies are highlighted. Attention is also paid to sustainable cultivation methods, including wastewater treatment and bioremediation to capture CO2 and fix nitrogen and phosphorus, produced from industrial, agricultural and municipal sources. Finally, a light is shed on the important role of algae metabolic engineering.