2^nd generation microalgal biofuel production systems have the potential to play an important role in global strategies aimed at reducing CO₂ emissions, producing fuels for the future and eliminating the competition between food and fuel production associated with 1st generation biofuel production (e.g. bio-ethanol produced from corn). This is because microalgal bioreactors can be located on non arable land to capture sunlight and CO₂ to produce feedstocks for a wide range of biofuels (e.g. oil for biodiesel). The use of salt tolerant algae has the further advantage of fresh water conservation. Furthermore as CO₂ is captured in the biomass, it is possible to convert a proportion of the biomass to charcoal for long term C-sequestration. Detailed industrial and biochemical feasibility studies have been completed. These indicate that it is possible to develop economically viable 2^nd generation microalgal biofuels systems. Here key developments being conducted by the Solar Biofuels Consortium (www.solarbiofuels.org) will be presented.