The present work is dedicated to study of diesel-biodiesel-ethanol blends in a diesel engine using addition of various concentrations of carbon nanowires. Algae oil from microalgae has the potential to become a sustainable fuel source as biodiesel. The Neochloris oleoabundans algal oil was extracted by mechanical extraction method. The transesterification reaction of algal oil with methanol and base catalyst was used for the production of biodiesel. Experimental investigation results were studied for various parameters, such as exhaust emission of carbon monoxide, hydrocarbon, oxides of nitrogen gases, smoke, and carbon dioxide.