Microalgal photosynthesis is efficient enough to fix C02 in both atmosphere and industrially discharged gases, and is a possible future alternative for C02 reduction. This paper describes physiological responses of microalgal cells to extremely high C02 concentrations, capability of microalgal cells to fix C02 at both indoor and outdoor culture experiments, and efforts to establish a culture collection of marine microalgae. Recent researches indicate that microalgae are likely to playa key role in worldwide issues of the coming century.