Biological fixation of carbon dioxide using microalgae is known as an effective CO$_2$reduction technology. However, many environmental factors influence microalgal productivity. Optimal cultivation factors were determined for the green alga, Euglena gracilis Z, which offers high protein and vitamin E content for animal fodder. In batch culture in a photovioreactor, it was found that theinitial pH, temperature, CO$_2$concentration in air, and light intensity during the optimal cultivating conditions were 3.5, 27$^{circ}C$, 5-10% and 520 ${mu}$mol/㎡/s, respectively. When tap water and freshwater were used as cultivating media unsterilized tap water was found to be effective. A kinetic model was considered to determine the relationship between the specific growth rate and the light intensity. The half-velocity coefficient (K(sub)I) in the Monod model under photoautotrophic conditions was 978.9 ${mu}$mol/㎡/s.