Cultivation of microalgae for applications such as fuel, food, pharmaceuticals and farming is a rapidly developing area of research and investment. Whilst microalgae promises to deliver many environmental benefits compared with existing biofuel technology, there are also issues to overcome in relation to wastewater management, emissions control, land use change and responsible development of genetically modified organisms. This review seeks to highlight both the positive and negative impacts of microalgae cultivation, focusing on impacts to the aquatic, atmospheric and terrestrial biospheres that may occur and would need to be managed should the microalgae cultivation industry continue to grow.