While engineering of new biofuels pathways into microbial hosts has received considerable attention, innovations in bioprocessing are required for commercialization of both conventional and next-generation fuels. For ethanol and butanol, reducing energy costs for product recovery remains a challenge. Fuels produced from heterologous aerobic pathways in yeast and bacteria require control of aeration and cooling at large scales. Converting lignocellulosic biomass to sugars for fuels production requires effective biomass pretreatment to increase surface area, decrystallize cellulose and facilitate enzymatic hydrolysis. Effective means to recover microalgae and extract their intracellular lipids remains a practical and economic bottleneck in algal biodiesel production.