A process for isolation of three products (fatty acids, chars and nutrient-rich aqueous phases) from the hydrothermal carbonization of microalgae is described. Fatty acid products derived from hydrolysis of fatty acid ester groups in the microalgae were obtained in high yield and were found to be principally adsorbed onto the char also created in the process. With the highest lipid-containing microalga investigated, 92% of the fatty acids isolated were obtained by solvent extraction of the char product, with the remaining 8% obtained by extraction of the acidified filtrate. Obtaining the fatty acids principally by a solid–liquid extraction eliminates potential emulsification and phase separation problems commonly encountered in liquid–liquid extractions. The aqueous phase was investigated as a nutrient amendment to algal growth media, and a 20-fold dilution of the concentrate supported algal growth to a level of about half that of the optimal nutrient growth medium. Uses for the extracted char other than as a solid fuel are also discussed. Results of these studies indicate that fatty acids derived from hydrothermal carbonization of microalgae hold great promise for the production of liquid biofuels.