The potential of microalgae as a source of renewable energy received lately large attention. Microalgal biomass is a potential source of renewable energy and it can be converted into energies such as biodiesel, ethanol, combustible gasses or it can be used to produce pharmaceutical, food additives and other. If microalgal biofuel production is to be sustainable and economically acceptable, further optimization of microalgae production and its conversion to viable compounds is needed. Microalgae are photosynthetic microorganisms with simple growing requirements (light, sugars, CO2, nitrogen, phosphorus, and potassium) that can fixate CO2, produce lipids, proteins and carbohydrates in very short periods of time.
These products can be processed into both biofuels and valuable co-products. Municipal, agricultural and industrial wastewaters are able to satisfy growing requirements of microalgae and hence provide cost-effective sustainable biofuel production with simultaneous wastewater treatment. Integration of biofuel production and wastewater treatment has major advantages for both industries, however major challenges needs to be overcome in order to implement such facilities in large-scale. This paper reviews current status of this topic with focus on fuel production with simultaneous algae wastewater treatment and major technological challenges.