Profit and policy implications of producing biodiesel-ethanol-diesel fuel blends to specification

► Optimization model developed to evaluate biodiesel-ethanol-diesel (BED) fuel blends. ► Economic benefits of additives for improving BED fuel properties were quantified. ► Tax credits and mandates may not promote BED production more than only tax credits. ► Increase of optimal profit from BED production by using ethanol from food wastes.