The advantages of reusability, lower cost, and environmentally friendly operation have made the heterogeneous catalyzed methylic process a preferable alternative to the homogeneously catalyzed protocol. The optimal production yield of palm kernel shell oil (PKSO) methyl ester (PKSOME) was modeled using Response Surface Methodology (RSM). The cost of PKSOME was determined, and the synthesized PKSOME was blended with diesel fuel with various volume ratios. Several analyses were done, including thermophysical properties using ASTM test methods, density and viscosity, fire point and flash point, aniline point, and acid value. Emission characteristics such as exhaust smoke, carbon monoxide, and carbon dioxide were measured using an IC engine. The use of waste eggshells for heterogeneously catalyzed biodiesel from underutilized PKSO for green diesel can reduce production costs even further. The green biodiesel model and TP correlations have applications in the biodiesel and aviation industries.