AbstractThis study proposed a new energy-positive technological approach for wastewater treatment and bioenergy generation using an algal–bacterial symbiosis system in a photo anoxic baffled reactor (PABR). The PABR consisted of a sedimentation chamber, four regular baffled chambers, and two floated filter media chambers. The PABR was operated in the presence of natural sunlight with an average intensity of 30 µmoles/m2/s. A wide range of ORP (−215 to 255 mV) data suggested that a suitable environment condition existed in the PABR for photosynthesis, nitrification, and denitrification. Simultaneous nitrification/denitrification (SND) was observed in the first three chambers, and microbial assimilation was governed in the last four chambers. An average biochemical oxygen demand (BOD), NH3–N, total nitrogen (TN), and PO43− removal efficiencies were more than 88, 48, 36, and 42%, respectively. Moreover, hydrothermal liquefaction (HTL) was carried out for sludge and microalgae samples for bioenergy (e.g., biocrude and biochar) conversion, where the sludge sample containing microalgae and bacteria was collected from PABR and microalgae sample was collected from photobioreactor. Finally, the Fourier transform infrared spectroscopy (FTIR) analysis was done for both biocrude and biochar derived from sludge and microalgae samples, and it was suggested that the biocrude and biochar derived from sludge sample were better than that of microalgae sample.