Climate change mitigation, economic growth and stability, and the ongoing depletion of oil reserves are all major drivers for the development of economically rational, renewable energy technology platforms. Microalgae have re-emerged as a popular feedstock for the production of biofuels and other more valuable products. Even though integrated microalgal production systems have some clear advantages and present a promising alternative to highly controversial first generation biofuel systems, the associated hype has often exceeded the boundaries of reality. With a growing number of recent analyses demonstrating that despite the hype, these systems are conceptually sound and potentially sustainable given the available inputs, we review the research areas that are key to attaining economic reality and the future development of the industry.