Microalgae can provide several different types of renewable biofuels. These include methane produced by anaerobic digestion of the algal biomass; biodiesel derived from microalgal oil and photobiologically produced biohydrogen. This review presents the current classification of biofuels, with special focus on microalgae and their applicability for the production of biodiesel. The paper considered issues related with the processing and culturing of microalgae, for not only those that are involved in biofuel production, but as well as the possibility of their utilization in environmental pollution control, especially with relation to greenhouse gas emissions and the process of sewage purification. The paper gives also a characterization of microalgae used in the production of biofuels and of their advantages relative to other raw materials used in fuel production. Keywords: Biodiesel, biofuels, microalgae, photobioreactors, environmental applications.