Beginning in 2013, NREL began transitioning from the singular focus on ethanol to a broad slate of products and conversion pathways, ultimately to establish similar benchmarking and targeting efforts. One of these pathways is the conversion of algal biomass to fuels via extraction of lipids (and potentially other components), termed the 'algal lipid upgrading' or ALU pathway. This report describes in detail one potential ALU approach based on a biochemical processing strategy to selectively recover and convert select algal biomass components to fuels, namely carbohydrates to ethanol and lipids to a renewable diesel blendstock (RDB) product. The overarching process design converts algal biomass delivered from upstream cultivation and dewatering (outside the present scope) to ethanol, RDB, and minor coproducts, using dilute-acid pretreatment, fermentation, lipid extraction, and hydrotreating.