The system for fermentation using algae of the present invention includes a first reactor and a second reactor being in fluid communication with each other. A first valve placed between the first reactor and the second reactor controls the fluid connection between the reactors. A gas inlet, in fluid connection to the first reactor, is located at an end opposite the second reactor. A devolatization unit or cell lysis chamber is connected to the second reactor by a second valve. A biomass stream having gas, liquid and biosolids contents passes through the first reactor with gas. The biomass stream mixes and dissolves the gas in the reactors. The cellular structure of the biomass stream ruptures in the devolatization unit, allowing the processed materials, such as oil, gas, and biosolids, to be harvested for use.