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Bio ethanol is the fast growing and alternative source of fuel all over the world. Micro algae biomass is use to derive bio fuels, ithave a high capacity of co2 fixation and accumulate lipids, proteins and carbohydrates. The bio ethanol produce by algae is the 3rd generation of bio fuels. Due to the short life cycle, algae are surely a valuable source of biomass. It helps in bringing down frequent environmental imbalances. Micro algae found in local pond and river micro algae can be use to characterise its algae species. The collected algae sample is carried out with manual drying, grinding and pre-treatment process. It results in the modification of carbohydrate structure and variation in the amount of ethanol produce after fermentation. The research is related to the production of bio ethanol by the use of microalgae and reduces the use of non-renewable energy resource.