Microalgae are photosynthetic microorganisms that can produce lipids, proteins and carbohydrates in large amounts over short periods of time. These products can be processed into both biofuels and useful chemicals. Two algae samples (Cladophora fracta and Chlorella protothecoid) were studied for biofuel production. Microalgae appear to be the only source of renewable biodiesel that is capable of meeting the global demand for transport fuels. Microalgae can be converted to biodiesel, bioethanol, bio-oil, biohydrogen and biomethane via thermochemical and biochemical methods. Industrial reactors for algal culture are open ponds, photobioreactors and closed systems. Algae can be grown almost anywhere, even on sewage or salt water, and does not require fertile land or food crops, and processing requires less energy than the algae provides. Microalgae have much faster growth-rates than terrestrial crops. the per unit area yield of oil from algae is estimated to be from 20,000 to 80,000liters per acre, per year; this is 7–31 times greater than the next best crop, palm oil. Algal oil can be used to make biodiesel for cars, trucks, and airplanes. The lipid and fatty acid contents of microalgae vary in accordance with culture conditions. The effect of temperature on the yield of hydrogen from two algae (C. fracta and C. protothecoid) by pyrolysis and steam gasification were investigated in this study. In each run, the main components of the gas phase were CO2, CO, H2, and CH4.The yields of hydrogen by pyrolysis and steam gasification processes of the samples increased with temperature. The yields of gaseous products from the samples of C. fracta and C. protothecoides increased from 8.2% to 39.2% and 9.5% to 40.6% by volume, respectively, while the final pyrolysis temperature was increased from 575 to 925K. The percent of hydrogen in gaseous products from the samples of C. fracta and C. protothecoides increased from 25.8% to 44.4% and 27.6% to 48.7% by volume, respectively, while the final pyrolysis temperature was increased from 650 to 925K. The percent of hydrogen in gaseous products from the samples of C. fracta and C. protothecoides increased from 26.3% to 54.7% and 28.1% to 57.6% by volume, respectively, while the final gasification temperature was increased from 825 to 1225K. In general, algae gaseous products are higher quality than gaseous products from mosses.