This review shows the potential of algae in combating both air and water pollution and the production of biofuel feedstock in a much cleaner manner. Various research articles published in leading journals have been studied thoroughly to give a critical mentioning of various methods of cultivation in different reactors. It provides a comprehensive narration about a) selection of suitable algal species b) selection of a suitable mode for growing c) selection of suitable reactor type and d) carbon bio-fixation. This review found that hybrid airlift photobioreactors are highly efficient because it exploits the benefits of two different types of reactors to overcome the drawbacks. It also provides salient features in the selection of suitable microalgal species. The mixotrophic culture mode is found to be best for the integrated approach. The models used to calculate carbon dioxide bio-fixation rate would be useful for engineers and researchers to quantify the carbon removal.