Abstract: Compositions and methods for genetically modifying algae or other photosynthetic eukaryotes to express an alcohol producing enzyme, such as pyruvate decarboxylase (PDC) and alcohol dehydrogenase (ADH) or any other enzymes that also synthesizes methanol, ethanol or butanol are provided. These enzymes are engineered to contain chloroplast targeting sequences which efficiently target xenotypic proteins to the chloroplast. Algae can be stably transformed with the compositions comprising chloroplast targeting constructs containing alcohol producing enzymes whereby the alcohol is produced in the chloroplast of the organism.