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The demand and use for energy is increasing continuously due to industrialisation, desertification, cost of electricity, depletion of petroleum resources, human population and increasing commercial activities. The basic and traditional sources of energy has been petroleum resources, natural gas, coal, hydro and nuclear, however, the major disadvantage of using petroleum based fuel is atmospheric pollution due to greenhouse gas (GHG) emissions caused by inefficient burettes, hence inefficient indiscriminate burning of enormous amount of petroleum diesel has increased CO2 level in the atmosphere which traps and prevent the heat from going to the outer atmosphere, thereby causing global warming. Algae were grown in waste and fresh water with NPK added to the tap water. The biodiesel was produced through the process of extraction, heating and transesterification. NaOH as a catalyst with methanol and hexane were added The result of this research revealed that 33% and 29% of was extracted from 11.5 grams 10.5 grams from the dry weight of algae from waste and fresh water respectively. It can be concluded from the result of this research that algae is a potential alternative source of biodiesel compared to oil from seeds. Biodiesel from algae is a perfect replacement or alternative to petroleum diesel. This is because algae are found everywhere, easy to cultivate in a small pond, and it is more effective than vegetable oil.