Water scarcity and emerging demands for renewable energy have increased concerns about energy security and advanced wastewater treatment, and microalgae have emerged as promising candidates to solve these problems. This study assesses the feasibility of microalgal wastewater treatment, and the utilization of the resulting microalgal biomass, as a renewable energy source. We cultured four selected microalgal species in filtered wastewater collected from the municipal treatment facility in Daegu, Republic of Korea. We measured nutrient consumption, growth rate, and physicochemical properties during cultivation, then analyzed the biomass for biochemical composition, ultimate analysis, proximate analysis, and biodiesel and lubricant properties, to estimate its potential applications. Desmodesmus sp. KNUA024 emerged as the most promising strain, removing 99.10% of ammonia nitrogen, 91.31% of total nitrogen, and 95.67% of total phosphate. Its biomass had a calorific value of 19.5 MJ kg−1, similar to terrestrial plants. α-linolenic acid was the most abundant polyunsaturated fatty acid (PUFA; 54.83%). Due to its PUFA content, Desmodesmus sp. KNUA024 also had a high iodine value, indicating its potential for use as a bio-lubricant. Therefore, Desmodesmus sp. KNUA024 shows promise for wastewater treatment, energy, and industrial applications.