The choice of precise strain is a crucial parameter to the success of algal oil industry. A novel halophilic microalgae, Aphanothece halophytica is selected as a potential source to satisfy the enormous energy needs. This species is highly resilient to environmental changes and can effectively utilize both organic and inorganic nutrients. Commercialization of biodiesel production is hindered by its production cost which necessitates advances in quantitative and qualitative microalgae cultivation. In this work, the salinity and major nutrient sources such as nitrogen, phosphorous and potassium of the standard Jaworski's medium are replaced with commercial agricultural fertilizers like urea (N), single super phosphate (P) and muriate of potash (K) respectively and its concentrations optimized for the growth rate. The result showed maximum growth at 60 ppt salinity, 0.05 gl(-1) (N), 0.5 gl(-1) (P) and 0.5 gl(-1) (K). Then a novel attempt is made to identify a low cost media, involving organic-inorganic (seaweed extract + NPK), inorganic (micronutrients + NPK), organic (vermicompost medium) for maximizing growth rate and lipid productivity, which is then compared with the standard Jaworski's medium. A. halophytica gave the highest cell density of 21.6 x 10(6) +/- 0.17 cells ml(-1) on the 20th day with a lipid content of 29 0.1% by dry weight in seaweed extract + NPK medium. It's potentiality for biodiesel production is further confirmed by the gas chromatography analysis of the lipid. (C) 2016 Elsevier Ltd. All rights reserved.