The ever-increasing quantity of greenhouse gases in the atmosphere can be attributed to the rapid increase in the world population as well as the expansion of globalization. Hence, achieving carbon neutrality by 2050 stands as a challenging task to accomplish. Global industrialization had necessitated the need to enhance the current production systems to reduce greenhouse gases emission, whilst promoting the capture of carbon dioxide from atmosphere. Hydrogen is often touted as the fuel of future via substituting fossil-based fuels. In this regard, renewable hydrogen happens to be a niche sector of novel technologies in achieving carbon neutrality. Microalgae-based biohydrogen technologies could be a sustainable and economical approach to produce hydrogen from a renewable source, while simultaneously promoting the absorption of carbon dioxide. This review highlights the current perspectives of biohydrogen production as an alternate source of energy. In addition, future challenges associated with biohydrogen production at large-scale application, storage and transportation are included. Key technologies in producing biohydrogen are finally described in building a carbon-neutral future.