This project aims to establish a sustainable blue carbon circular platform that combines environmental and economic benefits by utilizing microalgae for carbon reduction and energy generation. In collaboration with Formosa Plastics Corporation, a novel, demonstrative autotrophic–heterotrophic microalgal system will be designed for carbon sequestration and bio-oil production. At the ton-scale carbon sequestration stage, mutant microalgal strains with high tolerance to CO₂ and flue gas impurities will be cultivated to build an efficient carbon capture system, while optimizing lipid accumulation strategies. At the 100-liter heterotrophic stage, rapid fermentation-based cultivation of encapsulated microalgae will produce high lipid yields, with CO₂ generated during the process recycled back into the sequestration system. Harvested biomass will undergo advanced cell disruption techniques, replacing conventional organic solvent extraction. This environmentally friendly approach hydrolyzes microalgal cell walls efficiently to produce high-quality biofuel feedstock. The resulting monosaccharides can be recycled as an organic carbon source for heterotrophic microalgae production. Residual algal biomass after oil extraction will be converted into biochar, enhanced with green additives to improve performance. By leveraging a dual-microalgae approach with complementary functionalities, the platform integrates carbon reduction and energy production in a closed-loop system. The project is also exploring collaborations with leading domestic aviation companies. With robust technical foundations and established links across production and market chains, it aims to implement a large-scale system, potentially establishing Taiwan’s first sustainable biofuel demonstration plant.