Sarcopeltis skottsbergii is an endemic red alga species of the Southern Cone, with biliproteins as accessory pigments including R-phycoerythrin (R-PE). The production of S. skottsbergii is around 20,000 tons of dry alga per year. The evaluation of R-PE in a biorefinery model is still in the early stages in the field of algal biotechnology to be used in the food, pharmaceutical, cosmeceutical and nutraceutical industries. The objective of this Thesis is to present the current knowledge and the exploration of novel applications, encouraging the rational and integral utilization of this commercial specie. The Thesis is organized into six sections, covering information on the processing technologies for extraction (HPH and UAE) and protection (alginate/shellac by ionic gelation) of R-PE and fractions for functional foods and nutraceuticals, the in vitro and in vivo assessment of the biological activities, and alternative intensive production culture systems based on yellow light to saturate photosynthesis supplemented by blue light for R-PE accumulation. HPH method was the most efficient extraction method of R-PE. Furthermore, R-PE showed a positive correlation between the oxygen radical absorbance capacity (ORAC) in the best-selected extractions. An attractive non-aggressive extraction alternative with the biological activity of interest is suggested. From the residual supernatant generated by high-pressure homogenization, two soluble polysaccharides (neutral and acid fractions) were obtained with high biological activity. The acid polysaccharides, which had a relatively high sulfate content, exhibited significant antioxidant activity in superoxide radical assay (ABTS) and high anti-proliferative effects on melanoma (G-361), leukemia (U-937) and colon (HCT-116) carcinoma cells.