Methods and apparatus for processing algae are described in which a hydrophilic ionic liquid is used to lyse algae cells at lower temperatures than existing algae processing methods. A salt or salt solution is used as a separation agent and to remove water from the ionic liquid, allowing the ionic liquid to be reused. The used salt may be dried or concentrated and reused. The relatively low lysis temperatures and recycling of the ionic liquid and salt reduce the environmental impact of the algae processing while providing biofuels and other useful products.