BACKGROUND Microalgae are a diverse group of photosynthetic microorganisms of significant interest to the biotechnology industry, either as a sustainable source of natural compounds, or as light-driven cell factories to produce recombinant metabolites and proteins. Their ability to utilise light, CO2, and basic nutrients leads to a simple and low-cost phototrophic cultivation process. This is particularly relevant to low- and middle-income countries, all of which require a cultivation system that is cheap, technically simple to operate, readily scalable, and can meet basic Good Manufacturing Practice requirements. A disposable 'hanging bag'-type photobioreactor operated as a bubble column fits these criteria. RESULTS In this study, the characterisation and design modifications to improve the performance of a 15 L hanging bag is reported. The bubble behaviour using different sparger designs was investigated together with gas hold-up, mixing time, and mass transfer coefficient of CO2. A gas flow rate of 5 L min(-1) using a new sparger design and a modified height-to-diameter ratio of the bag led to a two-fold improvement in algal biomass productivity when culturing the green microalga Chlorella sorokiniana. The cultivation of a luciferase-expressing Chlamydomonas reinhardtii strain in the modified hanging bag also demonstrated an 11% increase in luciferase content. CONCLUSION This is the first attempt to characterise this simple hanging bag system that brings the industry-favoured single-use bag concept into the research field of photobioreactor technology. The hanging bag with modified sparger and dimensions improves microalgal biomass productivity and demonstrates the potential of simple and low-cost systems for microalgal cultivation. (c) 2021 The Authors. Journal of Chemical Technology and Biotechnology published by John Wiley & Sons Ltd on behalf of Society of Chemical Industry (SCI).