This work is focused on intermediate pyrolysis of sawdust in a 100. g batch reactor at 500. ±. 10. °C. The pyrolysis vapors coming from reactor were directly quenched with chilled biodiesel from jatropha oil at 4. ±. 2. °C to obtain a suitable blend for stationary engine application. Total bio-oil yield was found to be 37\% (wt.). After layer separation from the resultant mixture, biodiesel miscible bio-oil phase calorific value was found to be 39. ±. 0.5. MJ/kg, which indicated that the bio-oil/biodiesel mixture was stable within the conditions tested and hence suitable for engine applications. The overall process provides a platform for blended biofuel, biochar as substitute of sub-bituminous coal and pyro-gas for combined heating and power application. © 2015 Elsevier B.V.