Economically viable production facilities for microalgae depend on the optimization of growth parameters with regard to nutrient requirements. Using microalgae to treat industrial effluents containing heavy metals presents an alternative to the current practice of using physical and chemical methods. Present work focuses on the statistical optimization of growth of Chlorococcum humicola to ascertain the maximum production of biomass. Plackett Burman design was carried out to screen the significant variables influencing biomass production. Further, Response Surface Methodology was employed to optimize the effect of inoculum, light intensity and pH on net biomass yield. Optimum conditions for maximum biomass yield were identified to be inoculum at 15%, light intensity to be 1500lx and pH 8.5. Theoretical and predicted values were in agreement and thus the model was found to be significant. Gas chromatography analyses of the FAME derivatives showed a high percentage of saturated fatty acids thereby confirming the biofuel properties of the oil derived from algal biomass.