Extraction of algal oil and valuable byproducts from wet algae using two stage hydrothermal extraction(or subcritical water extraction)and liquefaction is the latest development in algal biofuel research.This presentation consists of two parts: experimental work on the algal oil extraction under subcritical water conditions with a follow on hydrothermal liquefaction of residual biomass and a life cycle assessment study on algal biodiesel production from the bio-crude oil extraction obtained in the HTL process.An energy efficient extraction of algal lipids from wet algal biomass was performed at subcritical conditions of water.