INTRODUCTION : Nowadays, Malaysia specifically having a big problem with the increasing of fuels. We are suggesting to implement algae biofuel in order to save the cost of Malaysia’s citizen. Other than that, petroleum that currently been used is a limited energy source as it is non- renewable enegy. Thus, our researcher and scientist had found a new discovery that algae biofuel can replace petroleum as the potential second source. We are considering and exploring all the pros and cons of this type of fuel so that it will give us no harm in implementing this technology in Malaysia soon. OBJECTIVES:  To replace algae biofuel as a second source of raw material apart from petroleum.  To introduce algae biofuel as a new resource decrease the usage of pof green technology in Malaysia.  To study algae potential and its wide usage in industry.  To decrease the usage of petroleum as main source of oil and gas industry. SCOPE: Our research will cover about the steps in production of algae biofuels. Other than that, we also identify the function and its potential to be the second resource of energy after petroleum. we will be discussed on the advantages and disadvantages of algae biofuel. METHODOLOGY: INTERNET RESEARCH We gathered the information from internet to get more idea on how the algae biofuel are made. QUESTIONNAIRES We create the questionnaires and distributed it to the 20 random correspondents in order to ask questions that related to our research. ORGANISATION: Our project contains five chapters which are introduction, literature review, methodology, results & discussions, and conclusions & recommendation. Results and discussions are being made after we gathered the information from our survey. Finally, conclusion and recommendation are made for better improvement for this algae biofuel technology. RESULT & DISCUSSION: CONCLUSION & RECOMMENDATION: Our life today is very dependent on natural sources which are going to deplete from the Earth in anytime. One of the method to save our Mother Nature is by replacing petroleum to algae biofuel as a second source. Using new and innovative techniques for cultivation, algae may allow biodiesel production to achieve the price and scale of production needed to compete with, or even replace, petroleum. This technology has the pros and cons. So, in order to overcome the problems, it is recommend that further studies should ne carry out to find out the solutions. Algae biofuel probably can be used in this country. In couple years more, this research can turn into reality with condition; only if Malaysia make organization specifically for doing this research deeply in order to make this innovation become true. Based on conducted survey on all young generation, they believe this will succeed and can be employ in Malaysia as this kind of sources is renewable one and most importantly the cost are much cheaper than petroleum. They encourage this survey very well and hoping this algae biofuel can be achieve in 20 years time.