Need of energy is constantly increasing because of increase in population and industrialization globally. Depletion of fossil fuel, increase in pollution level and imbalance in the ecological level of the earth, etc. cause researchers to think of alternative solutions to fossil fuel. Biodiesel derived from crops may be replacement of petroleum-derived fuel used for transport and power generation without adversely affecting the crisis of food and also keeping the environment clean. This research talks about algae cultivation, process for algae to biofuel conversion, conceptual design and general layout of slow pyrolysis process. B40 gives approximate 54% mechanical efficiency compared to B0 of 51% in an I.C.Engine. Thus algae biodiesel may address current burning issues of the country as well as of the earth like global warming, treatment of sanitation/waste water, carbon sequestrations, rural development via creating lots of employment, etc.