Effect of various flue gas CO2 concentrations (5%, 10% and 14.1%) on growth rate and biochemical properties of a green microalga Scenedesmus obliquus was investigated. S. obliquus showed the highest biomass production and growth rate (0.36 g L-1 and μmax = 1.00 day-1), total inorganic carbon removal (35.8 mg L-1), lipid productivity (9.9 mg L-1 day) and carbohydrate productivity (10.3 mg L-1 day) with 14.1% CO2 after 8 days of cultivation. Fatty acid methyl ester analysis revealed that the palmitic and oleic acid contents were increased up to 5% and 7% with 14.1% CO2, respectively. Application of flue gas CO2 enhanced the growth along with lipid and carbohydrate productivity of S. obliquus, which can be exploited for reducing the CO2 concentration.