An internally illuminated photobioreactor (IIPBR) design is proposed for energy-efficient biomass production. Theoretical rationale of the IIPBR design and its advantages over the traditional bubble column photobioreactors (PBRs) are presented, followed by experimental results from prototype scale cultivation of freshwater and marine algal strains in an 18 L IIPBR. Based on theoretical considerations, the proposed IIPBR design has the potential to support 160% higher biomass density and higher biomass productivity per unit energy input, B/E, than a bubble column PBR of equal incident area per unit culture volume. Experimental B/E values recorded in this study with fresh water algae and marine algae (1.42 and 0.37 g W-1 d(-1), respectively) are at least twice as those reported in the literature for comparable species cultivated in bubble column and airlift PBRs. (C) 2012 Elsevier Ltd. All rights reserved.