Transesterfication is the process of combining algae with an alcohol to produce esters and crude oil or biodiesel. We will be able to use this step after we determine the fatty acid content of our algae.

If our algea is a good candidate for producing bio-fuel, we will be able to use transesterfication to produce our crude bio-fuel. Unfortunately, during the process of transesterfication, we will be producing the by-product glycerol. Because the glycerol produced is not pure, it cannot be used in cosmetics or animal feeds.

We would be producing an unwanted by-product. And trying to purify the glycerol would cost three times as much as the glycerol is worth. However, research is being done on a strain of bacteria that "eats" glycerol and produces several interesting byproducts, such as butanol and ethanol.