Algae has potential as a sustainable biofuel feedstock due to its high growth yields and ability to grow in wastewater. However, significant challenges remain in developing algae-based biofuels including high costs of production. While algae can remove nutrients from wastewater, more research is needed to improve algal growth rates and lipid yields. Additional processing steps like dewatering algae are also energy intensive and expensive. For algae to become commercially viable as transportation fuel, further reductions in production costs through technology advances will be required.