In this research work, phase behaviour of the synthesized Schizochytrium algae biodiesel, diesel and octanol was studied with water in oil emulsions (Quaternary blend). The effects of different hydrophilic lipophilic balance were investigated by varying the ratio of Span 80 and Tween 80 (20-100%) in the quaternary blend to find an optimum HLB number. The optimum fuel blend of HLB number 12 (Span 20%: Tween 80%) showed no phase separation for 25 days. The influence of hydrogen addition in quaternary blend (QB20) and biodiesel blend (B20) under variable hydrogen flow rates (1 l/min and 2 l/min) was investigated to improve the engine parameters using dual fuel mode of operation. The dual fuel mode of operation increased the brake thermal efficiency from 29.71% for quaternary blend to 32.01% with the addition of 2 l/min hydrogen. In terms of emission, UHC was reduced by 30% and 5% for QB20 thorn 1 l/m H2 and QB20 thorn 2 l/m H2, respectively. The maximum of 11% CO emission was reduced by the hydrogen inducted QB20 thorn 2 l/m H2 blend. (C) 2019 Hydrogen Energy Publications LLC. Published by Elsevier Ltd. All rights reserved.