The potential for producing biofuels from algae has generated much excitement based on projections of large oil yields with relatively little land use. However, numerous technical challenges remain for achieving market parity with conventional non-renewable liquid fuel sources. Among these challenges, the energy intensive requirements of traditional cell rupture, lipid extraction, and residuals fractioning of microalgae biomass have posed significant challenges to the nascent field of algal biotechnology. Our novel approach to address these problems was to employ low cost solution-state methods and biochemical engineering to eliminate the need for extensive hardware and energy intensive methods for cell rupture, carbohydrate and protein solubilization and hydrolysis, and fuel product recovery using consolidated bioprocessing strategies. The outcome of the biochemical deconstruction and conversion process consists of an emulsion of algal lipids and mixed alcohol products from carbohydrate and protein fermentation for co-extraction or in situ transesterification.