A hetero-photoautotrophic algal growth model was studied for improved wastewater treatment and low cost algal biofuel feedstock production. The microalga, Auxenochlorella protothecoides UMN280, was grown heterotrophically on concentrated municipal wastewater and then autotrophically with CO2 supplementation (air, 1% and 5%, respectively). Strain UMN280 was harvested by self-sedimentation after the heterotrophic stage and the supernatant was aerated with different levels of CO2 to facilitate autotrophic growth in the second stage. The maximal biomass concentration and lipid content at the first and second stages reached 1.12 g/L and 28.90%, and 1.16 g/L and 33.22%, respectively. The nutrient removal efficiencies for total phosphorus, ammonia, nitrogen and chemical oxygen demand at the end of the two-stage cultivation were 98.48%, 100%, 90.60% and 79.10%, respectively. The above process can be used to treat organic-rich wastewaters (e.g. industrial and animal manure wastewaters) to achieve the dual purpose of low-cost wastewater treatment and biofuel feedstock production. (C) 2012 Elsevier Ltd. All rights reserved.