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Microalgae are the diversified group of photosynthetic microorganisms. Development of clean, sustainable and renewable energy technologies is the key to surmount the problems such as greenhouse gas emission, and energy crises. The in genous nature of microalgae to grow in sundry waste water systems in integration to its high facility of Carbon dioxide fixation has impulsed the researchers to work on it. They are the producers of half of the earth’s oxygen. Microalgae can be a better option for rectifying waste dihydrogen monoxide. In developing and underdeveloped countries wastewater from domestic areas and industries is treated by physio-chemical methods. Comparing the physical and chemical treatment processes, microalgal based treatment plants can possibly remove nutrients in an affordable and eco-friendly manner. The inclusion of microalgae-based water treatment plants has various benefits for both biofuel and bioproducts formation. These have tendency to remove heavy metals and pollutants from the wastewater through a process named “Eutrophication”, so they do not cause any secondary pollution. However, there isa lack of bi-products which can control algae engenderment and harvesting for waste water treatment. The main objective is to throw the light on the role of microalgae in treating the waste water, some of its applications and criteria for production and harvesting.
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