The paper considers the possibility of commercial cultivation of microalgae in the Republic of Dagestan (Russia) for producing the biofuel and other biotechnological goods with high value added. Microalgae can be used not only for biofuel, but also in the food and pharmaceutical industries, in agriculture as feed for farm animals and poultry, as well as for the purification of geothermal water from phenols before discharge into the sewage system. Comparative evaluation of microalgae productivity in comparison with traditional oilseeds is given. For Dagestan, located on the coast of the Caspian Sea, with mild climate and an abundance of solar and geothermal energy, the development of this technology is a very promising challenge. These conditions are the advantage for the creation of large-scale microalgae production. Biotechnology in Dagestan can become both a profitable and high-tech and innovative industries.

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