The production of high value biochemicals and high energy biofuels from sustainable resources through the use of microbial based, green conversion technologies could reduce the dependence on petrochemical resources. However, a sustainable source of carbon and a clean, cost effective method for its conversion to high quality biofuel products are obstacles that must be overcome. Here we describe the biosynthesis of fatty alcohols in a genetically engineered cyanobacterial system through heterologously expressing fatty acyl-CoA reductase and the effect of environmental stresses on the production of fatty alcohols in the mutant strains. Hydrocarbon production in three representative types of native cyanobacterial model strains and the mutant strain overexpressing acetyl-CoA carboxylase was evaluated. The results of this investigation demonstrate the potential for direct production of high value chemicals and high energy fuels in a single biological system that utilizes solar energy as the energy source and carbon dioxide as the carbon source.