The Life Cycle Assessment (LCA) methodology was applied to assess the environmental feasibility of a novel wastewater treatment technology based on oxygenic photogranules (OPG) biomass in comparison to a conventional activated sludge (CAS) system. LCA using laboratory scale experimental data allowed for eco-design of the process during the early stage of process development at laboratory scale. Electricity consumption related to artificial lighting, the fate of the generated biomass (renewable energy and replacement of mineral fertilizer), and the nitrogen flows in the OPG system were identified as major contributors to the potential environmental impact of the OPG treatment system. These factors require optimization in order to reduce the environmental impact of the overall OPG system. Nonetheless, the environmental impact of a non-optimized OPG scenario was generally lower than for a CAS reference system. With an optimization of the artificial lighting system, an energy neutral treatment system may be within reach.