Growing demand for energy and food by the global population mandates finding water-efficient renewable resources. Microalgae/cyanobacteria have shown demonstrated capacity to contribute to global energy and food security. Yet, despite proven process technology and established net energy-effectiveness and cost-effectiveness through co-product generation, microalgal biofuels are not a reality. This review outlines novel biofilm cultivation strategies that are water-smart, the opportunity for direct energy conversion via anaerobic digestion of N2-fixing cyanobacterial biomass and integrative strategies for microalgal biodiesel and/or biocrude production via supercritical methanol-direct transesterification and hydrothermal liquefaction, respectively. Additionally, fermentation of cyanobacterial biofilms could supply bioethanol to feed wet transesterification to biodiesel conversion for on-site use in remote locations.