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The increasing world population generates huge amounts of wastewater as well as large energy demand. Additionally, fossil fuel’s combustion for energy production causes the emission of greenhouse gases (GHG) and other pollutants. Therefore, there is a strong need to find alternative green approaches for wastewater treatment and energy production. Microalgae biorefineries could represent an effective strategy to mitigate the above problems. Microalgae biorefineries are a sustainable alternative to conventional wastewater treatment processes, as they potentially allow wastewater to be treated at lower costs and with lower energy consumption. Furthermore, they provide an effective means to recover valuable compounds for biofuel production or other applications. This review focuses on the current scenario and future prospects of microalgae biorefineries aimed at combining wastewater treatment with biofuel production. First, the different microalgal cultivation systems are examined, and their main characteristics and limitations are discussed. Then, the technologies available for converting the biomass produced during wastewater treatment into biofuel are critically analyzed. Finally, current challenges and research directions for biofuel production and wastewater treatment through this approach are outlined.

The wastewater originates from different industrial, municipal, and agriculture processes and contains different nitrogen sources, for example, nitrate, ammonium, nitrite, and phosphate such as inorganic and organic sources. The discharge of high nitrate and phosphate to the ecosystem or nearby water bodies can cause eutrophication which disbalances the aquatic ecosystem.Furthermore, ingestion of these pollutants can cause severe toxicity and disease to humans and animals. Thus, from an environmental and social perspective, its treatment is essential with no negative impact on the ecosystem. Microalgae are fundamental, mixotrophic microorganisms that treat different wastewater and utilize nitrate and phosphate in the medium as a source of nutrients. Among them, Picochlorum sp., have the potential to remove nitrogen and phosphate from wastewater. The biomass produced by Picochlorum sp. can be a promising candidate as a sustainable feedstock for biofuel and bioproducts formation. Thus, the present review provides a brief knowledge and understanding about the concentration of nitrogen and phosphate in different wastewater, their negative impacts, and the uptake mechanism of microalgae. Furthermore, the review also provides an insight into Picochlorum sp., and the effects of different physiological and nutritional factors on their growth, wastewater treatment efficacy, and biomass for value-added products and biorefinery applications. In addition, the review is useful to understand the potential of Picochlorum sp. for a tenable wastewater treatment process.