Sustainable production of algae will depend on understanding trade-offs at the energy-water nexus. Algal biofuels promise to improve the environmental sustainability profile of renewable energy along most dimensions. In this assessment of potential US freshwater production, we assumed sustainable production along the carbon dimension by simulating placement of open ponds away from high-carbon-stock lands (forest, grassland, and wetland) and near sources of waste CO 2 . Along the water dimension, we quantified trade-offs between water scarcity and production for an ‘upstream’ indicator (measuring minimum water supply) and a ‘downstream’ indicator (measuring impacts on rivers). For the upstream indicator, we developed a visualization tool to evaluate algae production for different thresholds for water surplus. We hypothesized that maintaining a minimum seasonal water surplus would also protect river habitat for aquatic biota. Our study confirmed that ensuring surplus water also reduced the duration of low-flow events, but only above a threshold. We also observed a trade-off between algal production and the duration of low-flow events in streams. These results can help to guide the choice of basin-specific sustainability targets to avoid conflicts with competing water users at this energy-water nexus. Where conflicts emerge, alternative water sources or enclosed photobioreactors may be needed for algae cultivation.