The growth and on-site bioremediation potential of an isolated thermal- and CO₂-tolerant mutant strain, Chlorella sp. MTF-7, were investigated. The Chlorella sp. MTF-7 cultures were directly aerated with the flue gas generated from coke oven of a steel plant. The biomass concentration, growth rate and lipid content of Chlorella sp. MTF-7 cultured in an outdoor 50-L photobioreactor for 6 days was 2.87 g L⁻¹ (with an initial culture biomass concentration of 0.75 g L⁻¹), 0.52 g L⁻¹ d⁻¹ and 25.2%, respectively. By the operation with intermittent flue gas aeration in a double-set photobioreactor system, average efficiency of CO₂ removal from the flue gas could reach to 60%, and NO and SO₂ removal efficiency was maintained at approximately 70% and 50%, respectively. Our results demonstrate that flue gas from coke oven could be directly introduced into Chlorella sp. MTF-7 cultures to potentially produce algal biomass and efficiently capture CO₂, NO and SO₂ from flue gas.