The utilization of renewable biomass energy in large extent provides sustainable development which link to global stability, economic growth, innovation in local market, reduces green house gas emission and meeting the energy needs of vast rural population to get quality of life. In this investigation algal oil was used as a raw material for biodiesel production. The decreasing fossil fuel resources cause both insufficiency in providing demand and increase in prices and it triggers the structural change in energy production and resources. In this context, the innovations in encouraging the use of renewable energy sources will make it possible to manage the passage from an unsustainable structure to a more sustainable structure. The necessary conditions for the world oil supply can be said to enter into a new era with the increasing demand pressure. In this study naturally occurring fresh water algal samples were collected from different sites of Shivamogga. Algae was identified as Oedogonium spp and Spirogyra spp., inoculated into the selective media, which favor the growth of algae oil was extracted from dried algal samples and pH were analyzed. These results indicate that biodiesel can be produced from Oedogonium spp. and Spirogyra spp.,