In order to ensure the sustainability of algal biofuel production, a number of issues need to be addressed. Previously, we reviewed some of the questions in this area involving algal species and the important challenges of nutrient supply and how these might be met. Here, we take up issues involving harvesting and the conversion ofbiomass to biofuels. Advances in both these areas are required if these third-generation fuels are to have a sufficiently high net energy ratio and a sustainable footprint. A variety of harvesting technologies are under investigation and recent studies in this area are presented and discussed. A number of different energy uses are available for algal biomass, each with their own advantages as well as challenges in terms of efficiencies and yields. Recent advances in these areas are presented and some of the especially promising conversion processes are highlighted.