Abstract Traditional pulp and paper industry is in transition due to increased competition and changes in consumption habits. Advanced biorefining is seen as one option to create new business opportunities. This article presents a microalgae-utilizing biorefinery which is integrated into a traditional pulp and paper mill and which produces high-value algal products, fertilizer and biogas from secondary process streams. Presented biorefinery process is validated with mass balances, employing initial data from a Scandinavian pulp and paper mill. Results indicate that the proposed process is technically viable. Production potential is sensitive to light and nutrient availability in algae cultivation, and seasonal changes in irradiance result in significant output variation. The biorefinery process can be generalized to other process industry and wastewater treatment plants that have similar output flows.