There is potential environmental benefit to be gained from the use of algae because of their ability to fix CO2, no need for direct land use and utilization of bio-waste (rich in potassium, phosphate and nitrogen based compounds) as a nutrients. The aim of the research is to assess the impact of biogas production and the final use in a cogeneration unit system from a Life Cycle Assessment (LCA) in comparison with a similar reference system using a non-renewable source (e.g. natural gas). The paper is intended to be a preliminary study for understanding the implementation of this novel technology in a Latvian context.