This research is addressing the potential of growing micro-algae in coal seam gas (CSG) associated water. The two aims of the paper are (a) A literature review exploring the potential of CSG as a media for algal growth and (b) Predicting the yield obtainable from a novel bio-reactor design when using amended CSG water as a media. In the first part, a literature review was conducted to cover many aspects in regards to; the benefits of microalgae industry, its ability to grow in complex environment such as in CSG water, harvesting techniques in use and the extracted oil properties and yields. In the second part, a chemical component was presented which can be added to the CSG water to eliminate its negative impact on algae growth. It has been shown theoretically through balanced chemical reaction equations that adding small amount of acetic acid to the coal seam gas associated water will alter its chemical composition and may become a suitable environment for supporting algae growth. The potential of using an innovative technique in harvesting micro-algae is also discussed. A backed bed bio-reactor can be filled with micro/macro-diameter transparent silks' chops to support the algae growths and at the same time will serve as a harvesting tool. This innovative harvesting technique combined with amended CSG water has theoretically showed, based on balanced chemical equations and a literature review, a potential of dry-weight algae production of approximately 36 kg/d and an oil yield of 25 kg per each photo-bioreactor. However, while there are no studies addressing the above research potentials, there is plenty of research to back up its applicability. Crown Copyright (C) 2013 Published by Elsevier Ltd. All rights reserved.