The production of energy dense fuels from renewable algal biomass feedstocks - if sustainably developed at a sufficiently large scale - may reduce the consumption of petroleum from fossil fuels and provide many environmental benefits. Achieving economic feasibility has several technical engineering challenges that arise from dilute concentration of growing algae in aqueous media, small cell sizes, and durable cell walls. For microalgae to be a sustainable source of biofuels and co-products, efficient fractionation and conversion of the cellular contents is necessary. Research was carried out to address two processing options for efficient microalgae biofuel production: 1. Ultrasonic cavitation for cell disruption and 2. Hydrothermal conversion of a model algal triglyceride. 1. Ultrasonic cell disruption, which relies on cavitating bubbles in the suspension to produce damaging shock waves, was investigated experimentally over a range of concentrations and species types. A few seconds of high intensity sonication at fixed frequency yielded significant cell disruption, even for the more durable cells. At longer exposure times, effectiveness was seen to decline and was attributed, using acoustic measurements, to ultrasonic power attenuation in the ensuing cloud of cavitating bubbles. Processing at higher cell concentrations slowed cell disintegration marginally, but increased the effectiveness of dissipating ultrasonic energy. A theoretical study effectively predicted optimal conditions for a variety of parameters that were inaccessible in this experimental investigation. In that study, single bubble collapse was modeled to identify operating conditions that would increase cavitation, and thus cell disruption. Simulations were conducted by varying frequency and pressure amplitude of the ultrasound wave, and initial bubble size. The simulation results indicated that low frequency, high sound wave amplitudes, and small initial bubble size generate the highest shock wave pressures. 2. Hydrolysis of a pure model triglyceride compound was experimentally examined for the first time at hydrothermal conditions - from 225 to 300°C. Lipid product composition assessed by GC-FID was compared to previous studies with mixed vegetable oils and used to develop a kinetic model for this oil phase reaction.