Growing algae in large ponds as a feedstock for biofuel has been of interest for some time, and has received considerable funding since the late 1970's. Desert regions enjoy certain advantages as algae-growing areas, abundant solar energy and inexpensive land among them. Nevertheless, one issue that has not been investigated sufficiently is the effect of high temperatures like those seen in the desert (>25° C), would have on algal growth rates. The desert's high temperatures could decrease these growth rates, and while there are different methods for cooling the ponds, they all increase the cost of growing algae. This may lead to situations where the cost of reducing growing pond temperatures might outweigh the gains achieved by increases in production. This thesis addresses this issue. To quantify the interplay between temperature and algae productivity, the effect that temperature has on algae productivity must be determined, as must the cost to maintain a pond at optimal algae-growing temperatures. This thesis uses experimentation to determine the temperature dependence of algae productivity, and determines the heat transfer requirements of pond cooling through numerical simulation.