This article reviews the utilization of first and second-generation biofuels as the suitable alternatives to depleting fossil fuels. Then the concern has been presented over a debate on most serious problem arising from the production of these biofuels; which is the increase of food market prices because of the increased use of arable land for the cultivation of biomass used for the production of first and second-generation biofuels. The solution to this debate has been suggested with the use of non-arable land for the cultivation of algal biomass for the generation of third generation biofuels. The recent research and developments in the cultivation of algal biomass and their use for biofuel production have been discussed. (C) 2010 Elsevier Ltd. All rights reserved.