The production of H₂ gas from water and sunlightusing microalgae, `biophotolysis', has been a subjectof applied research since the early 1970s. A numberof approaches have been investigated, but most provedto have fundamental limitations or requireunpredictable research breakthroughs. Examples areprocesses based on nitrogen-fixing microalgae andthose producing H<sub>2</sub> and O<sub>2</sub> simultaneously fromwater (`direct biophotolysis'). The most plausibleprocesses for future applied R & D are those whichcouple separate stages of microalgal photosynthesisand fermentations (`indirect biophotolysis'). Theseinvolve fixation of CO₂ into storagecarbohydrates followed by their conversion to H₂by the reversible hydrogenase, both in dark andpossibly light-driven anaerobic metabolic processes. Based on a preliminary engineering and economicanalysis, biophotolysis processes must achieve closeto an overall 10% solar energy conversion efficiencyto be competitive with alternatives sources ofrenewable H₂, such as photovoltaic-electrolysisprocesses. Such high solar conversion efficiencies inphotosynthetic CO₂ fixation could be reached bygenetically reducing the number of light harvesting(antenna) chlorophylls and other pigments inmicroalgae. Similarly, greatly increased yields ofH₂ from dark fermentation by microalgae could beobtained through application of the techniques ofmetabolic engineering. Another challenge is toscale-up biohydrogen processes with economicallyviable bioreactors.Solar energy driven microalgae processes forbiohydrogen production are potentially large-scale,but also involve long-term and economically high-riskR&D. In the nearer-term, it may be possible tocombine microalgal H₂ production with wastewatertreatment.