Global energy crisis, unstable prices of petroleum products, environmental concerns arising from oil spillage and noxious gaseous emissions into the atmosphere are the current major problems of conventional fossil energy source . Therefore, the search for alternative sources of new, sustainable and renewable energy such as biomass, solar, hydro, wind has become necessary. This research work focused on overcoming the challenges of the environment due to the conventional fossil energy source by producing bio-diesel from Micro-algae. Besides producing energy from micro-algae,it is possible to remove nutrients from wastewater.