Not all microalgae are capable of producing biofuels, but many species have the potential. Microalgae produce biofuels, such as biodiesel, by accumulating lipids (oils) within their cells. The best microalgae strains for biodiesel production typically have high lipid content, fast growth rates, and tolerance to varying environmental conditions.
Most of the microalgae species are favorable for biodiesel production due to high lipids contents 50–70% and may reach to 80% such as in case of the microlaga B. braunii which accumulate up to 80% of oil in it biomass. All algae have the capacity to produce energy-rich oils, and a number of microalgal species have been found to naturally accumulate high oil levels in total dry biomass. While algae can produce higher yields of biofuel per acre compared to traditional crops, the costs associated with setting up cultivation systems, maintaining optimal growth conditions, and processing the algae into usable fuel have been significant barriers to commercial viability.Algal oils, just like oils produced by soy, canola, palm and the less-known jatropha plants, can be made good biodiesel feedstocks through transesterification. In that process, a catalyst creates a biodiesel fuel by hydrolyzing and methylating fatty acids in the oils. Microalgal oil extracted is then converted to biodiesel through transesterification, which is an essential process used in biodiesel production. It involves the conversion of triglycerides derived from plant or animal fats to fatty acid methyl esters (FAMEs), the main constituents of biodiesel. Chlorella, Dunaliella, Chlamydomonas, Scenedesmus, and Spirulina are known to contain a large amount (>50% of the dry weight, dw) of starch and glycogen, useful as raw materials for ethanol production.
It depends on how do you ask? Theoretically all micro- algae are capable of producing, synthesizing, biofuel. Technically almost non of the species are capable of producing, economically, biofuel at state of the art operational technologies. I've converted different algae species into biodiesel without difficulty, but the key questions are yield and cost!