This Small Business Innovation Research Phase I Project aims at developing an advanced biotechnology for bioremediation of animal wastewater by using oil-rich microalgae. Rapid growing animal farming industries (hog, poultry, cattle, and dairy) have generated tremendous amount of animal wastes that have become important sources for environmental pollution. Current method of disposing untreated animal manure to cropland has caused severe problems in water & air quality in many parts of the United States. We propose to solve this problem by using oil-rich microalgae that can effectively remove excessive nutrients from animal wastewater, thus reducing the pollution to the water sources. As a by-product of this bioremediation process, the resulting oil-rich microalgae biomass can be used for biodiesel production, providing further environmental benefits to the society. It is anticipated that suitable microalgal species will be characterized for rapid removal of nitrogen & phosphorus from hog wastewater and for microalgal oil accumulation. Moreover, flat-plate photobioreactors will be tested to demonstrate the feasibility of mass cultivation of the selected species. With the successful completion of this Phase I project, the feasibility of using oil-rich microalgae for concurrent bioremediation of animal wastewater and production of biodiesel will be demonstrated. Such microalgae-based biotechnology is environment-friendly, and can improve recovery of waste materials, and reduce negative environmental impacts of the animal wastes. It can also improve the environment in rural communities because it addresses the water and air pollution problems created by the animal farms in the rural area. In addition, this technology addresses the needs of the U.S. for renewable energy, which is playing an increasing role in energy security, economical development, and environmental protection in this country. Our long-term goal is to establish an environmentally friendly, economically viable, and commercially profitable enterprise that focuses on the bioremediation of animal waste and simultaneous production of biodiesel as a by-product. OBJECTIVES: Animal farming industry has produced enormous amounts of waste, causing serious pollution and environmental degradation to the U.S. Managing of such animal wastes effectively presents a significant environmental challenge - a challenge that is not being met by current regulations and industry practices. The common practice nowadays in major animal farms is to use lagoon to store animal manure, which will be later disposed of to surrounding cropland. There is an urgent need to develop and implement a technically sound, economically feasible, and environmentally friendly technology for properly managing the animal manure produced in hog, chicken, cattle and dairy farms nationwide. To solve these problems, we have hypothesized to use oil-rich microalgae to treat animal manure for removal of excessive nitrogen and phosphorus, and for simultaneous production of microalgal oil that will be refined into biodiesel. Microalgae are groups of photosynthetic microorganisms that can utilize inorganic nutrients (e.g. nitrogen, phosphorus) from environment to produce organic compounds, such as protein, pigment, and oil. This approach aimed at serving dual purposes concurrently: treating animal wastewater with oil-rich microalgae while producing biodiesel from the resulting biomass of the microalgae. In this SBIR Phase I project, we propose to (1). Select the suitable microalgal species that can grow rapidly in animal wastewater; (2). Optimize the culture conditions that can sustain the removal of nutrients and the accumulation of oil in the selected microalgal species; and (3). Develop innovative photobioreactor system that can support high microalgal growth rates, efficient removal of nitrogen and phosphorus from the animal wastewater, and maximum accumulation of microalgal oil. With the successful completion of this project, we expect to develop an innovative microalgae-based biotechnology for effective bioremediation of animal wastewater. At the same time, oil will be extracted from the resulting oil-rich microalgal biomass as a by-product for biodiesel production. The remaining biomass after oil extraction can be used as biofertilizer. Such microalgae-based biotechnology is environment-friendly, and can improve recovery of waste materials, and reduce negative environmental impacts of the animal wastes. It can also improve the environment in rural communities because it addresses the water and air pollution problems created by the animal farms in the rural area. Our long-term goal is to establish an environmentally friendly, economically viable, and commercially profitable enterprise that focuses on the bioremediation of animal waste and simultaneous production of biodiesel as a by-product