The present study explored the process of bioremediation, sequestration of carbon dioxide, and biofuel production using multifarious potent freshwater microalgae Tetradesmus obliquus TS03. The heavy metals were reduced, viz., 8.34 mg of cadmium (95.13%), 4.56 mg of chromium (97.28%), 1.34 mg of copper (98.67%), 1.24 mg of cobalt (98.19%), 1.93 mg of lead (96.72%), 2.31 mg of nickel (97.14%), and 2.23 mgL−1 of zinc (96.59%) using photobioreactor microalgal treatment method. The heavy metal biosorption capacity rate (q<inf>max</inf>) was 98.90% determined by the Langmuir and Freundlich isotherm kinetics model at 10 days of effluent treatment using Tetradesmus obliquus TS03. The microalgae T. obliquus TS03 utilized 98.34% of carbon dioxide (CO<inf>2</inf>) enhanced by acetyl CoA carboxylase and RuBisCO enzymes. The biodiesel was extracted from microalga and identified 32 fatty acid methyl ester major compounds viz., tetradecanoate methyl ester, hexadecanoic acid methyl ester, tridecanoic acid methyl ester, heptadecatrienoic acid methyl ester, octadecanoic acid methyl ester, eicosanoic acid methyl ester, pentadecanoic acid methyl ester, and cis-methylicosanoate using gas mass chromatography (GCMS). The biodiesel functional groups were identified, viz., amides, phenols, alcohols, alkynes, carboxylic acids, carbonyls, and ketones groups using Fourier transformation infrared (FTIR). The bioethanol was identified using high-performance liquid chromatography (HPLC) and determined the peak presented at RT of 4.35 min (75,693.1046 µV s−1). Graphical Abstract: [Figure not available: see fulltext.] © 2023 Elsevier B.V., All rights reserved.