Oxygenic photosynthetic organisms such as cyanobacteria, green algae and diatoms are capable of absorbing light and storing up to 10-13% of its energy into the H-H bond of hydrogen gas. This process, which takes advantage of the photosynthetic apparatus of these organisms to convert sunlight into chemical energy, could conceivably be harnessed for production of significant amounts of energy from a renewable resource, water. The harnessed energy could then be coupled to a fuel cell for electricity generation and recycling of water molecules. In this review, current biochemical understanding of this reaction in green algae, and some of the major challenges facing the development of future commercial algal photobiological systems for H2 production have been discussed.