As businesses look for ways to reduce emissions without overhauling their entire operations, Hydrotreated Vegetable Oil (HVO) has emerged as a cleaner alternative to diesel. But what exactly is HVO – and how important could it be for the transportation industry?
In this blog, we explain what HVO is, how it compares to conventional diesel, and what companies need to know before making the switch.
Hydrotreated Vegetable Oil (HVO) – also known as renewable diesel or green diesel – is a fuel made by processing renewable waste fats such as vegetable oil, animal fat (tallow), or used cooking oil. Unlike traditional biodiesel, HVO is created through a hydrotreatment process that results in a fuel almost chemically identical to conventional diesel, but without the fossil inputs.
The result is a paraffinic, low-carbon fuel that can power diesel engines without the need for any mechanical modifications.
While HVO behaves much like regular diesel in terms of engine performance, there are some key differences under the hood.
The higher cetane value means HVO burns with a more efficient and cleaner combustion, leading to reduced engine deposits and emissions.
Not quite yet – but it’s growing.
HVO is still a relatively new entrant in the fuel market. Its adoption has so far been driven by industries in North America and parts of Europe, where emissions from fossil diesel are tightly regulated. As demand increases, driven by ESG targets, net-zero strategies, and growing regulatory pressure, production capacity is also expected to rise.
In the UK, availability is still limited, but evolving. Some large fuel suppliers now offer HVO, particularly for fleet operators, logistics companies, and heavy-duty off-road machinery.
At present, HVO tends to cost about 10-15% more than conventional diesel. However, for many organisations, that’s a price worth paying.
The long-term emissions savings – and the ability to switch without any upfront investment in new vehicles or infrastructure – make it a practical way to reduce Scope 1 emissions quickly and effectively. HVO is a “drop-in” fuel, meaning no engine modifications are needed.
The carbon savings are dramatic.
According to the UK Government’s latest GHG Conversion Factors, the emissions factor for HVO is just 0.03558 kg CO₂e per litre, compared to:
That’s a 99% reduction in carbon intensity when switching to HVO.
For a typical HGV (Heavy Goods Vehicle) travelling 20,000 miles per year, switching to HVO can cut emissions by over 95%, offering a fast and tangible win for companies working to decarbonise their fleet operations.
While the benefits are clear, businesses should be aware of a few key limitations:
For organisations looking to reduce direct (Scope 1) emissions from transport or machinery, HVO is a promising, low-barrier alternative to fossil diesel. It offers a fast route to emissions reduction without disrupting operations, and is likely to become more cost-competitive as supply increases.
That said, due diligence is essential. Make sure to evaluate your suppliers, assess total lifecycle emissions, and ensure that switching to HVO aligns with your broader sustainability goals.
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