As global leaders at COP29 discuss strategies to combat climate change, the role of alternative fuels in industrial decarbonization has taken center stage. Among these solutions, Hydrotreated Vegetable Oil (HVO) stands out as a practical and impactful choice for industries such as construction and haulage. By reducing greenhouse gas (GHG) emissions by up to 90% compared to fossil diesel, HVO is rapidly gaining recognition as a critical tool in the journey to net zero.
This blog explores the potential of HVO, its benefits, and how it is helping industries make meaningful progress toward ambitious climate targets.
What is HVO?
HVO is a renewable fuel made from waste vegetable oils and animal fats. Its chemical composition closely mirrors that of conventional diesel, making it:
- Drop-In Ready: Fully compatible with existing diesel engines and storage systems without modifications.
- Highly Effective: Cuts GHG emissions by up to 90%.
- Sustainable: Produced from waste feedstocks, ensuring minimal impact on food supply chains.
HVO is especially valuable as a short- to medium-term solution while industries work toward long-term electrification and hydrogen adoption.
The Case for HVO in Construction
An Industry Under Pressure
The construction sector faces increasing scrutiny over its carbon footprint. New regulations now require homebuilders to provide Scope 3 emissions reporting, placing sustainability across the supply chain under a microscope.
However, many construction companies lack robust carbon reduction plans, and diesel remains the primary fuel for on-site operations and material transport. Continuing to rely on diesel is neither sustainable nor aligned with industry goals.
Why HVO is the Ideal Solution
- Significant Emissions Reductions: By switching to HVO, construction firms can achieve immediate carbon savings without waiting for electrification technologies to scale.
- Minimal Barriers to Adoption: As a drop-in fuel, HVO requires no engine modifications, making the transition seamless.
- Futureproofing Businesses: Early adopters of HVO can align with evolving regulations, gain a competitive edge, and enhance their environmental credentials.
Driving Awareness and Adoption
Industry events, such as the recent Supply Chain Sustainability School meeting in Manchester, have emphasized the importance of collaboration and education to overcome barriers to HVO adoption. The Construction Leadership Council (CLC) supports HVO as a practical decarbonization tool, urging more firms to embrace its benefits.
HVO in Haulage: Tackling the Transport Sector’s Carbon Challenge
The Largest Contributor to UK GHG Emissions
Transport accounts for about 25% of the UK’s total GHG emissions, with haulage playing a significant role. Decarbonizing this sector is essential to meet the UK’s ambitious target of reducing emissions by 81% by 2035.
HVO’s Role in Haulage Decarbonization
- Immediate Compatibility: HVO can power existing heavy goods vehicles (HGVs) without requiring costly modifications.
- Enhanced Engine Performance: Its premium quality ensures smooth operation and extended engine life.
- Real-World Success: Examples like the RAC’s fleet of recovery trucks running on HVO, saving up to 300 tons of CO2e annually, highlight its potential.
Comparing HVO to Other Fuel Alternatives
While several renewable fuel options exist, HVO offers distinct advantages over alternatives like Biodiesel (FAME) and Compressed Natural Gas (CNG):
| Aspect | HVO | Biodiesel (FAME) | CNG |
|---|---|---|---|
| Emissions Savings | Up to 90% | Up to 80% | 25-30% |
| Compatibility | Drop-in ready | Requires engine modifications | Requires specialized vehicles |
| Storage Life | Up to 10 years | Shorter shelf life | N/A |
| Investment Cost | Minimal | Moderate | High |
HVO’s versatility and low adoption barriers make it an ideal choice for industries seeking immediate emissions reductions.
Overcoming Cost Challenges
While HVO’s upfront costs remain slightly higher than fossil diesel, its price is converging as production scales. The long-term benefits—reduced carbon taxes, improved brand reputation, and compliance with regulations—far outweigh initial expenses.
Industry leaders are increasingly recognizing that early adoption of HVO is a strategic investment, enabling them to stay ahead of the curve as markets and policies shift toward sustainability.
HVO: A Practical Solution for Achieving Net Zero
As electrification and hydrogen technologies continue to develop, HVO provides a critical bridge to net-zero emissions. Its immediate availability and compatibility with existing infrastructure make it a game-changer for carbon-intensive industries like construction and haulage.
Key Benefits of HVO
- Rapid Impact: Enables immediate reductions in GHG emissions.
- Scalable: Easily integrated into current systems, minimizing disruption.
- Reliable Performance: Operates in extreme temperatures and offers a long storage life.
- Cost-Effective Transition: Avoids the high costs associated with fleet electrification or hydrogen infrastructure.
The Road Ahead: Accelerating HVO Adoption
While HVO offers a clear pathway to decarbonization, widespread adoption requires:
- Increased Awareness: Industry stakeholders must be educated on HVO’s benefits and feasibility.
- Collaborative Efforts: Governments, fuel suppliers, and businesses must work together to scale production and lower costs.
- Policy Support: Incentives such as tax breaks or subsidies can encourage more companies to make the switch.
As seen at COP29, the urgency of climate action has never been greater. Industries that act swiftly to adopt solutions like HVO will not only contribute to climate targets but also gain a competitive advantage in an increasingly sustainability-focused marketplace.
Conclusion: Building a Sustainable Future with HVO
HVO represents an immediate, practical solution to the decarbonization challenges faced by construction, haulage, and other carbon-intensive sectors. Its ability to deliver significant emissions reductions without requiring extensive infrastructure changes makes it a valuable tool in the transition to net zero.
By embracing HVO, businesses can take meaningful steps toward sustainability while preparing for a future powered by electrification and hydrogen. As the climate crisis intensifies, adopting innovative solutions like HVO is no longer optional—it’s essential for securing a sustainable future for industries and the planet alike.