Algae have recently received a lot of attention as a new biomass source for the production of renewable energy and an important bioremediation agent. This study was carried out to evaluate the potential of green algae Scenedesmus obliquus grow in different concentrations of wastewater and the improvement of cultivation conditions to produce biomass rich in sugar to produce bioethanol by fermentation processes. The highest sugar content of S. obliquus biomass was recorded for algae cultivated with 40 and 85% wastewater after 9 days under aeration condition with dark and light duration (44.5%). It was found that the highest removal efficiency of BOD and COD were 18% for S. obliquus grown under aeration condition. The highest ethanol efficiency of S. obliquus biomass hydrolysate was 20.33% at 4th day. The best condition of S. obliquus to grow efficiently was under aeration with light and dark durations, where it has high efficiency to remove heavy metals from wastewater in this condition.