The present invention is directed to a photobioreactor comprising: (a) a tank for containing a liquid microbial culture; (b) a rotating mixing system contained within the tank, the rotating mixing system comprising one or more motors, and one or more shafts connected to the one or more motors, and a plurality of mixing blades attached to the one or more shafts, wherein the mixing blades are capable of mixing the microbial culture throughout the volume of the tank; (c) a lighting system, comprising a light source located outside the tank; a light emitting device mounted on the blades; and a conduit that transfers light from the light source to the light emitting device, wherein the lighting system is capable of providing sufficient light for growth of the microbial culture throughout the volume of the tank. The rotating system may be replaced with an oscillating system, and either system can be mounted on a moveable raceway.