Everything you need to know about HVO fuel

Battery technology is already transforming the way we power cars and, to a lesser degree, vans. That’s good news for some, but for others, particularly those running HGVs, refrigerated units, or vehicles with high utilisation and quick turnaround times, the infrastructure, real-world range, and charging-related downtime can still make full electrification a significant challenge.

For fleet operators looking for a practical, lower-carbon solution that can be adopted immediately with little or no impact on operational efficiency, hydrotreated vegetable oil (HVO) is an option worth considering. Let’s take a look at the pros, cons, and potential role it could play in a progressive decarbonisation strategy.

What is HVO and how is it made?

HVO is a renewable diesel alternative produced from waste fats and vegetable oils, such as used cooking oil or animal fats.

Unlike traditional biodiesel (FAME: Fatty Acid Methyl Ester), which is made through a process called esterification, HVO is created using hydrotreatment.

In esterification, oils or fats react with alcohol (usually methanol) and a catalyst to form esters, the chemical compounds that make up biodiesel, and glycerol as a by-product. The resulting fuel can be used to power diesel engines, but it tends to absorb water and degrade more quickly than conventional diesel fuels, especially in cold conditions.

By contrast, HVO is produced through a process called hydrotreatment, in which oils or fats are reacted with hydrogen at high temperature and pressure in order to remove oxygen and impurities. This is followed by a stage of isomerisation and cracking, which refines the fuel’s structure and gives it the same performance characteristics as fossil diesel. The result is a clean-burning fuel with properties almost identical to fossil diesel but without the water contamination and degradation issues linked to FAME biodiesel.

Are all HVO fuels the same?

The short answer is no. HVO quality depends on the feedstock used and the sustainability standards of the producer.

Most HVOs are made primarily from waste residues such as used cooking oil or animal fats, while others use virgin vegetable oils like palm or rapeseed. This raises an important environmental concern because cultivating oil crops for fuel can lead to deforestation, biodiversity loss and create competition with food production. In other words, it can turn food production land into fuel production land.

To ensure HVO is a genuinely sustainable choice, suppliers must be able to provide traceability information showing that it is waste-derived rather than crop-based and that it meets the EN 15940 standard, certifying it as a high-quality renewable diesel compatible with modern diesel engines. It should also carry ISCC (International Sustainability and Carbon Certification) accreditation confirming it has been responsibly produced.

The environmental benefits of HVO

Sustainably produced HVO can cut lifecycle greenhouse gas emissions by up to 90% compared with fossil diesel. It produces lower NOx, particulate matter and CO₂ emissions at the tailpipe, and eliminates the need for fossil-derived hydrocarbons altogether.

Because sustainable HVO is made from waste products, it also supports a circular economy by diverting used oils and fats from landfill and turning them into usable energy. However, it is important to remember that these benefits are dependent on the sources used. HVO made from virgin crops will still reduce tailpipe emissions but may also contribute to deforestation and food-versus-fuel conflicts.

The operational impact of using HVO

One of HVO’s biggest advantages is its ease of adoption. It can be used immediately in most modern diesel vehicles, including HGVs, vans, and plant equipment, without any modifications to engines or infrastructure. That said, the latter may depend on whether you already have the capacity to bunker fuel. 

In terms of refuelling, HVO is used in much the same way as traditional diesel, which means there’s no need for any specialist driver training or additional downtime. You can even mix it with regular diesel in the same tank, which is especially useful for fleet operators with bunkered fuel at regional depots but that occasionally need to refuel while out on the road. 

In simple terms, HVO offers the familiarity of diesel operations but with a much smaller carbon footprint and without the range limitations, infrastructure costs, or charging downtime that can sometimes be associated with electrification, especially for heavy or specialist vehicles.

Supply and storage

HVO is available through an increasing number of bulk fuel suppliers and, just like regular diesel, can be stored in on-site tanks or bowsers. Although some public forecourts are beginning to offer HVO pumps, for now at least, most commercial users still buy it in bulk.

What do manufacturers say?

Most major OEMs now recognise HVO as a valid fuel under the EN 15940 specification. This includes Scania, Volvo, DAF, Mercedes-Benz and Ford. In many cases, it’s already approved for use without warranty impact, although it’s always advisable to check your vehicle handbook or contact the manufacturer before switching.

Unlike FAME biodiesel, there’s no risk of filter blockages or microbial growth, and it performs well in low temperatures, right down to around -30°C. It also burns more cleanly than fossil diesel, producing fewer deposits in the engine and helping to reduce wear and long-term maintenance costs.

The financial implications

HVO is typically around 10-15% more expensive per litre than fossil diesel. Depending on the base price, this corresponds to roughly 10-20p per litre. For many fleets, this additional cost can be justified as part of a broader sustainability plan, balancing cost with carbon-reduction goals and customer expectations. These benefits can include an enhanced brand reputation and the opportunity to win additional work from environmentally focused clients who value low-emission logistics.

Looking ahead, as the Renewable Transport Fuel Obligation (RTFO) continues to evolve, future policy incentives could further narrow the price gap and make HVO an even more attractive option.

Are there any concerns?

Despite its advantages, HVO isn’t without controversy. The main concern is around feedstock sourcing. If production relies on virgin vegetable oils, it can end up competing with food production and drive deforestation, both of which undermine the potential environmental benefits.

There’s also the issue of limited global supply. Waste oils are a finite resource and so scaling HVO to replace all diesel use isn’t a realistic solution. For most fleets, it’s best viewed as a transitional fuel, one that can help to reduce emissions now while the industry continues to invest in electrification, hydrogen, and other zero-emission solutions.

The bottom line

HVO won’t replace battery or hydrogen power in the long term, but it’s still a valuable tool for fleets that can’t yet electrify. It delivers immediate carbon reductions, requires no vehicle modifications, and offers seamless integration with existing diesel operations.

As part of a progressive decarbonisation strategy, HVO can provide a practical route to lowering emissions today. To find out more about how we’re helping fleets choose the right fuel, for the right application, at the right time, just get in touch.

Keep up to date