Feedstock hybridization is an effective approach to address the challenges of the non‐availability of raw materials for biodiesel production. This study explores the hybridization of used sunflower oil and linseed oil in an optimized parametric transesterification method catalyzed by a potassium‐rich ash obtained from waste banana peels. Fractions of the oils were analyzed and hybridized in the ratio 50:50, 30:70, 70:30 to obtain bi‐hybrid oils and then trans‐esterified to obtain hybridized biodiesel fuel – in‐situ hybridization. The same pattern of co‐mingling was adopted for the produced single oil biodiesel to obtain bi‐hybridized biodiesel fuels – ex‐situ hybridization. The biodiesel obtained from the two‐pathway hybridization processes was analyzed for its fuel properties and compared with the biodiesel quality standards. The optimal conditions used for both the single and in‐situ hybrid oil transesterification were a methanol‐to‐oil ratio 10:1, catalyst amount 3.5 wt%, reaction time 60 min and a constant temperature of 65 °C, with the maximum biodiesel yield ranging from 94 to 97%. The fuel properties – density, viscosity, acid value, iodine value, cetane number and calorific value – obtained from the process compared well with the biodiesel quality standards. In some cases, the properties obtained via the ex‐situ hybridization approach were slightly improved compared with those of in‐situ hybridization. The study shows that the application of the two hybridization approaches are appropriate for biodiesel development and applications. © 2022 Society of Chemical Industry and John Wiley & Sons, Ltd