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The third generation of biodiesels, derived from microalgae, is one of the most interesting options for the replacement of fossil fuels. While the use of first generation biodiesels on different types of compression ignition engines is well documented in the open literature, much less information is available on algal fuels. As a matter of fact, the influence on combustion and pollutant emissions is not definitively assessed, depending on the combination of the specific features of both fuel and engine. The aim of this paper is to analyze the combustion process in a small industrial engine fueled by an algal Biodiesel, blended with standard Diesel fuel. The blend composition is the one typically used in most applications, i.e. 20% of biodiesel and 80% of Diesel (B20).