Renewable energy by using microalgae is another route to solve fossil fuel dependence, reduce climate change and enhance food security. The microalgae has a simple structure. Photosynthesis reaction of the microalgae converts solar energy into chemical energy which later can be used as fuel. This paper reviews microalgae as a new prospective for biofuel feedstock that is produced from non - food sources which offer a long term of sustainability and energy security. The cultivation system under open and closed system are discussed in this paper. A common weakness of the systems is low lipid production. A two stages culture also known as hybrid cultivation system that is discuseed in this paper can be used to overcome the weakness. A review on the performance of the microalgae biofuel applying in the internal combustion engines is presented in the last section of this paper.