A system for processing oil from algae is disclosed. Specifically, the system recycles byproducts of the process for use as nutrients during algae growth and oil production. The system includes a conduit for growing algae and an algae separator that removes the algae from the conduit. Also, the system includes a device for lysing the algae and an oil separator to remove the oil from the lysed matter. Further, the system includes a biofuel reactor that receives oil from the oil separator and synthesizes biofuel and glycerin. Moreover, the algae separator, oil separator and biofuel reactor all recycle byproducts back to the conduit to support further algae growth.