The purpose of these studies is to initiate new investigations on the use of algae as a biological system for the biotransformation of organic chemicals. Initial studies are aimed at using the steroid progesterone. In future studies we will investigate the ease by which algae cells can transform herbicides and insecticides. Following incubation of steroid with actively growing cells in shake flasks, the fermentation products will be isolated, purified and identified using several spectroscopic and spectrophotometric analyses.