Hydrothermal liquefaction of algae biomass is a promising technology for the production of sustainable biofuels, but the non-oil, aqueous co-product of the process has only been examined to a limited extent. The aqueous phase from liquefaction of the alga Nannochloropsis oculata (AqAl) was used to make growth media for model heterotrophic microorganisms Escherichia coli, Pseudomonas putida, and Saccharomyces cerevisiae. Growth rates, yields, and carbon/nitrogen/phosphorus uptake were measured. E. coli and P. putida could grow using AqAl as the sole C, N, and P source in media containing 10vol.%–40vol.% AqAl with the best growth occurring at 20vol.%. S. cerevisiae could grow under these conditions only if the media were supplemented with glucose. The results indicate that in a biorefinery utilizing algae liquefaction, the aqueous co-product may be recycled via microbial cultures with significantly less dilution than previously published methods.