NOVELTY - An algal fermentation system comprises fermentation reactor(s) having first reactor section which is continuous stirred tank reactor and second reactor section which is plug flow reactor; first baffle movable within fermentation reactor; dewatering unit for removing water from biomass product obtained from fermentation reactor; cell lysis chamber; separator; storage tank; mixing tank in fluid communication with dewatering unit, cell lysis chamber, separator and fermentation reactor; and anaerobic digester in fluid communication with cell lysis chamber.    USE - An algal fermentation system for fermentation of any raw organic material to produce oil.    ADVANTAGE - The system achieves up to 80% reduction in operating costs of batch fermentation processes because the process is continuous. The fermentation reactor design optimizes fermentation reaction between first and second sections. The system adjusts the first and second section for an optimal reactor for any given set of operating conditions, and allows for efficient or maximized collection of oil from biological processing.    DETAILED DESCRIPTION - An algal fermentation system comprises:    (1) fermentation reactor(s) having first reactor section which is continuous stirred tank reactor and second reactor section which is plug flow reactor;    (2) first baffle separating first reactor section and second reactor section, and movable within fermentation reactor;    (3) dewatering unit for removing water from biomass product obtained from fermentation reactor and in fluid communication with second reactor section;    (4) cell lysis chamber in fluid communication with dewatering unit;    (5) separator in fluid communication with cell lysis chamber;    (6) storage tank in fluid communication with separator;    (7) mixing tank in fluid communication with dewatering unit, cell lysis chamber, separator and fermentation reactor; and    (8) anaerobic digester in fluid communication with cell lysis chamber.    An INDEPENDENT CLAIM is included for fermentation method using algae, comprising:    (A) injecting gas into biomass stream containing oil, liquid portion and solid portion, and dissolving the gas in liquid portion of biomass stream in first reactor;    (B) transferring biomass stream mixture into second reactor, defusing the gas into cellular structure of biomass stream in second reactor for a predetermined time, and maintaining the defused biomass stream mixture in second reactor; and    (C) passing defused biomass stream mixture through a second valve so that gas changes phase from liquid to vapor within biomass cellular structure, and conveying the depressurized mixture to a devolatization unit (132), where gas, oil and solids are separated.    DESCRIPTION OF DRAWING(S) - The drawing shows a side elevational view of a system used for fermentation process.    Gas inlet (120)    Second valve unit (130)    Devolatization unit (132)    Transfer pump (134)    Gas line (136)