India is one of the most populous countries and is the third largest greenhouse gas–emitting nation. Energy security is a serious issue for India as it relies heavily on fossil fuel imports. Biodiesel production using microalgae as feedstock can address both of these issues. In this study, the technical feasibility of microalgae-based biodiesel production is carried out for a coal thermal power plant (i.e., Budge Budge Thermal Station) in the state of West Bengal, India, using a generic methodology. An oleaginous microalgae species that is tolerant toward flue gas was identified (i.e., Nannochloropsis sp). A 75-acre open raceway microalgae production plant was designed keeping the costs, energy demand, and CO2 emissions low. The open raceway pond can use 38 tons of CO2, produce 19 tons of algal biomass, and treat 9320 m3 of wastewater per acre annually.