The easiest and cheapest way is to use a centrifuge to separate the algae from the water, and then a press [like an olive press] to remove the oil from the algae. There are many methods of extracting the oil from the algae, including the use of chemicals.
If you go to
http://www.oilgae.com/
you will find many links and good information.
Once you have separated the oil from the algae, it is fairly straighforward to convert the oil to biodiesel through a chemical process known as transesterification.
It would be a stretch to do all of this for a science fair project. Your expectations on quantities may also be unrealistic. You may want to shoot for a few tablespoons of fuel or oil. You can expect at best to grow an algae that is 20-40% oil by [dry] weight. You also expect to harvest the algae when you have a 1% solution of algae-water, by weight. It may also take months to cultivate enough algae, even if you have the room for a pond. So it takes a lot of time and water to produce a siginficant amount of fuel; time is especially an issue for the first batch. You might expect the mass of algae to double every three days. When you start with a few hundredths of a gram, which is what you get for about $100, you have a ways to go.
You would normally want to use the strain of algae called Botryococcus braunii, for a project like this. It is a slow-growing algae, but it also can produce the highest yields by weight - it has reportedly been known to produce up to 80% oil by dry weight, but you won't get those sorts of results even with this strain. You can purchase algae cultures from UTEX
http://www.sbs.utexas.edu/utex/
This can get very complicated, and very expensive, very quickly. You might want to spend some time studying the subject and then focus on particular aspects of the process.