Microalgae have been recommended as superior candidate for fuel production because of their advantages of higher photosynthetic efficiency, biomass & lipid productivity, and faster growth rate as compared to other energy crops. To meet up all these criteria, we have developed a continuous outdoor micro-algal raceway pond reactor (RPR) and a lab scale indoor tubular photo bioreactor (PBR) for biofuel production. An attempt to utilise indigenous sources of nutrients to improve the economics also revealed that micro-algal culturing can also be used as a mode of nutrient removal and water treatment. The photosynthetic rate and lipid production were enhanced by arresting daytime cell division and promoting night-time cell division. A 50% lipid improvement was observed for the particular algal consortia. Microscopic studies revealed that temporal phase separation could be achieved by adjusting nutrient distribution pattern. To monitor temporal phase separation, it is required to know DNA multiplication model. Quantification of gDNA in RPR confirmed that cell division happens during the night which positively affects the photosynthetic efficiency and lipid productivity of microalgae. (C) 2017 The Chemical Industry and Engineering Society of China, and Chemical Industry Press. All rights reserved.