In this study, a systematic review of algae biofuels, including their development and production process, is presented. Compared with traditional techniques, supercritical CO₂ extraction, known for its high efficiency and environmental sustainability, has been widely applied in extracting plant compounds, oils, and fats, demonstrating its role as a promising alternative in biofuel conversion. The principle and features of supercritical CO₂ extraction technology are introduced, and its applications in biofuel production in China are reviewed. The results indicate its broad applicability and substantial scientific value in biofuel production, underscored by its unique extraction mechanisms and operational flexibility and obstacles to its large-scale implementation. Against a future where supercritical CO₂ extraction will play a pivotal role in industrial biofuel production due to the technology’s advancement and policy support in China, this review offers comprehensive insights and references to guide future research into and practices of supercritical CO₂ extraction and biofuel development.