Effects of superficial gas velocity and top clearance on gas holdup, liquid circulation velocity, mixing time, and mass transfer coefficient are investigated in a new airlift loop photobioreactor (PBR), and empirical models for its rational control and scale-up are proposed. In addition, the impact of top clearance on hydrodynamics, especially on the gas holdup in the internal airlift loop reactor, is clarified; a novel volume expansion technique is developed to determine the low gas holdup in the PBR. Moreover, a model strain of Chlorella vulgaris is cultivated in the PBR and the volumetric power is analyzed with a classic model, and then the aeration is optimized. It shows that the designed PBR, a cost-effective reactor, is promising for the mass cultivation of microalgae. (C) 2015 Elsevier Ltd. All rights reserved.