TECHNOLOGY FOCUS - BIOTECHNOLOGY - Preferred Method: In producing bio fuel feedstock, the biomass includes lipids. The using heterotrophic culture step comprises using waste material as an organic carbon source, to culture the algae or algae like species having physiological mechanisms for both phototrophic and heterotrophic growth in a dark fermenter or bioreactor. The waste material is selected from waste water and waste solids. The waste water and waste solids are agricultural wastes, industrial pulps, organic fraction municipal waste, and algae biomass residue, or any other organic waste which contains available organic carbon to be utilized by the cultured microorganisms. The method further comprises inputting carbon dioxide produced during the using heterotrophic culture step as a carbon source into the using phototropic culture step. The algae or algae like species are Chlorella sp., Chlamydomonas sp., and Scenedesmus sp. The seed produced from the heterotrophic culture has a cell count of 107-109 cells/ml, or more. The method also comprises using heterotrophic culture for accumulation of biomass by the algae or algae like species. In producing biofuel, the waste material is selected from waste water and waste solids. The waste water and waste solids are selected from the group consisting of agricultural wastes, industrial pulps, organic fraction municipal waste, and algae biomass residue. Preferred System: The system further comprises a tank for heterotrophic culture of algae or algae like species for biomass accumulation by the algae or algae like species. The biomass includes lipids. It further comprises detectors to detect and provide output regarding growth conditions in the open pond or reactor; and controllers to automatically shut down or start up operation of the open pond or reactor in response to the output provided by the detectors. The growth conditions are selected from amount of light, temperature, and presence of contamination. EXAMPLE - No suitable example given.