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In response to the energy crisis, global warming and climate changes, microalgae have received increasingly global attention as a renewable, alternative and sustainable source for the production of biodiesel. Much original research regarding microalgal biodiesel production has been reported. However, microalgal biodiesel faces plenty of challenges that current cultivation and biodiesel conversion is economically unfeasible for industrial applications on a large scale. This perspective paper first briefly discusses the latest advances in liquid transportation biodiesel production from microalgal biomass, including microalgal growth, biomass harvesting and drying, lipid extraction and biodiesel conversion. Subsequently, strategies for the future development of microalgal biodiesel have been proposed and discussed, in an attempt to reduce the cost gap. From the microalgal biodiesel production chain perspective …