The shortage of fuel in the near future and the change in climate due to greenhouse gases are serious
challenges of a global concern, thus it is imperious to explore new sustainable ways to overwhelm these
challenges. The need of a new sustainable energy sources has increased the importance of the third generation
biofuel produced from non-food stocks such as algae, which possibly represent a great opportunity in the long
term. The major challenge of the algae based bio-fuel production is their extraordinary cultivation costs, which
make their commercialization economically infeasible. Algal spp. especially Chlorella spp. are capable of thriving
in waste water and can accumulate high lipid contents. The aim of the current review was to highlight the possible
integration of waste water treatment and algae based bio-fuel production, as a sustainable option for cost effective
bio-fuel production along with lower environmental impact.