Effects of the toxic compounds in flue gas, SOx and NOx, on growth of Chlorella sp. KR-1 have been determined. Although growth of KR-1 was suppressed by the toxic compounds, KR-1 exhibited excellent tolerances to SOx compared to other algal strains. When Chlorella KR-1 was cultured with the model gas containing 60 ppm SO2, the linear growth rate was 1.24 g/l day which is about 25% lower than that of the control culture aerated with the gas mixture containing no toxic compounds, SO2 and NO. KR-1 could grow even with the model gas containing 100 ppm SO2 and the linear growth rate of KR-1 in the culture was 0.78 g/l day. The period for lag phase was increased with increasing of SO2 concentration that also resulted in the decrease of the linear growth rate and the maximum cell concentration. Direct CO2 fixation by Chlorella KR-1 has been successfully done using actual flue gases from a liquified natural gas (LNG)- or diesel-fueled boiler. These results indicated that Chlorella KR-1 may be applied for direct CO2 fixation from actual flue gas.