With the dwindling of fossil fuels supply and the urgent need for the development of low-carbon economy, microalgae bioenergy, both renewable and environmentally friendly, has become one of the worldwide focuses. Given its benefit to the security of national energy supply, microalgae energy is particularly significant for China, with more than 50% crude oil imported and limited arable land for grain and edible oil production. In this article, both the advantages of microalgae bioenergy and the challenges of its development are addressed, which involves fundamental research and technology development as well as commercial production. Furthermore, strategies are proposed for China’s microalgae bioenergy development, and its prospects are projected.