There is growing evidence that global warming could become a major global environmental threat during the 21st century. The precautionary principle commands preventive action, at both national and international levels, to minimize this potential threat. Many near-term, relatively inexpensive, mitigation options are available. In addition, long-term research is required to evaluate and develop advanced, possibly more expensive, countermeasures, in the eventuality that they may be required. The utilization of power plant CO{sub 2} and its recycling into fossil fuel substitutes by microalgae cultures could be one such long-term technology. Microalgae production is an expanding industry in the U.S., with three commercial systems (of approximately 10 hectare each) producing nutriceuticals, specifically beta-carotene, extracted from Dunaliella, and Spirulina biomass. Microalgae are also used in wastewater treatment. Currently production costs are high, about $10,000/ton of algal biomass, almost two orders of magnitude higher than acceptable for greenhouse gas mitigation. This report reviews the current state-of-the-art, including algal cultivation and harvesting-processing, and outlines a technique for achieving very high productivities. Costs of CO{sub 2} mitigation with microalgae production of oils ({open_quotes}biodiesel{close_quotes}) are estimated and future R&D needs outlined.