Microalgae photosynthesis for fixing CO2 in the flue gas of coal-fired power plants and its use for biomass energy has become an important core technology in the low carbon cycle, and it is one of the effective ways to achieve the "double carbon" goal in China. However, the high CO2 concentration in flue gas (relative to the natural air atmosphere for algae growth) and the presence of easily soluble acidic gases such as SO2 pose a great challenge to the photosynthetic growth of microalgae and the carbon conversion process, resulting in the limited engineering application of microalgae for flue gas CO2 capture. In order to promote the development of microalgae for flue gas CO2 fixation, this paper presented a comprehensive review from the construction of efficient algal species tolerant to flue gas atmosphere, the regulation of metabolism and conversion processes of microalgae for high carbon concentration to the transport and conversion processes of high CO2 concentration from flue gas in photobioreactors. The results show that Chlorella is the most potential algae species to be used for the biological fixation of flue gas CO2. Through screening and domestication, Chlorella can adapt to the high carbon concentration of flue gas and the stress of acidic gases at certain concentrations, while maintaining a high rate of carbon fixation. In addition, the dissolved transport and multiphase flow of flue gas in the photobioreactor are the key factors affecting the carbon fixation performance of microalgae. Enhancing CO2 transport and inhibiting the dissolution of SO2 acidic gas in the reactor are also effective means to improve the photosynthetic carbon sequestration of microalgae. The use of microalgae biomass is an effective means of carbon sequestration. The use of microalgae biomass can effectively increase the economics of microalgae to reduce flue gas CO2 emissions. This paper presented a summary of the research progress on the use of microalgae biomass as an energy resource, including the process flow and related research progress of microalgae transesterification for biodiesel, microalgae pyrolysis for bio-oil and biogas, and microalgae fermentation for biosynthesis gas. In order to improve the economic efficiency of microalgae biomass resources utilization, the direction of utilization of microalgae as a raw material for the synthesis of high-value products, as well as the way of resource utilization of algal sludge as a carbon-based material were pointed out. The direction of high-value energy-based resourceful tertiary utilization of microalgae-based biofuels and biochar and other products in collaboration, which with the premise of developing high-value utilization was proposed as a way to improve the economics feasibility of microalgae bio-fixed flue gas CO2 systems. While it can promote the research of new energy sources of microalgae biomass. This paper provids some guidance for the biological emission reduction and resourceful utilization of flue gas CO2 in China, aimed at promoting the development of green carbon economy.