An analysis of the energy life-cycle for production of biomass using the oil-rich microalgae Nannochloropsis sp. was performed, which included both raceway ponds, tubular and flat-plate photobioreactors for algal cultivation. The net energy ratio (NER) for each process was calculated. The results showed that the use of horizontal tubular photobioreactors (PBRs) is not economically feasible ([NER]<1) and that the estimated NERs for flat-plate PBRs and raceway ponds is >1. The NER for ponds and flat-plate PBRs could be raised to significantly higher values if the lipid content of the biomass were increased to 60% dw/cwd. Although neither system is currently competitive with petroleum, the threshold oil cost at which this would occur was also estimated.