We describe a potential novel process (SunCHem) for the production of bio-methane via hydrothermal gasification of microalgae, envisioned as a closed-loop system, where the nutrients, water, and CO2 produced are recycled. The influence on the growth of microalgae of nickel, a trace contaminant that might accumulate upon effluent recycling, was investigated. For all microalgae tested, the growth was adversely affected by the nickel present (1, 5, and 10 ppm). At 25 ppm Ni, complete inhibition of cell division occurred. Successful hydrothermal gasification of the microalgae Phaeodactylum tricornutum to a methane-rich gas with high carbon gasification efficiency (68-74%) and C1-C3 hydrocarbon yields of 0.2 gC1-C3/gDM (DM, dry matter) was demonstrated. The biomass-released sulfur was shown to adversely affect Ru/C catalyst performance. Liquefaction of P. tricornutum at short residence times around 360°C was possible without coke formatio