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One of the more interesting ways to convert algae into fuel is through the gasification-fischer-tropsch route. This procedure is known also as thermochemical process, as it comprises the thermal process (gasification) followed by the catalytic chemical synthesis (Fischer-Tropsch is one of the most well known catalytic synthesis processes).
This is not exactly an unknown route, but this is a route that algae energy companies are only about starting to explore. Solena is one such interesting company.
Some useful resources on FT-based biofuels
Here's a link on Fischer Tropsch process from our good ole Wikipedia.
Fischer Tropsch Diesel - Link
The Fischer-Tropsch Fat Connection - Link
Large-scale Fischer-Tropsch Fuel Production - Opportunities Challenges - Link (PDF)
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