Is HVO the future of clean diesel?

For decades, diesel fuel has powered industries, fleets and generators across the UK and the globe. Its reliability, energy density and affordability have made it a mainstay in sectors ranging from transportation and agriculture to construction and events. But as we face ever-more urgent environmental targets, diesel’s carbon-intensive nature has made it a prime candidate for innovation. Enter HVO – Hydrotreated Vegetable Oil – a transformative solution promising to redefine clean diesel. In this blog, we explore what HVO is, its advantages, challenges and whether it truly is the future of clean diesel for businesses and operators.

What is HVO?

HVO (Hydrotreated Vegetable Oil) is an advanced biofuel created by treating vegetable oils or sustainable fats with hydrogen under pressure. Unlike traditional biodiesel (FAME), which relies on esterification (and can raise issues with cold flow and engine compatibility), HVO undergoes hydroprocessing. This results in a chemically similar substance to fossil diesel, ensuring full compatibility with existing diesel engines and infrastructure.

HVO’s environmental benefits.

1. Significant CO₂ savings.

Arguably the greatest strength of HVO is its potential for greenhouse gas reduction. Depending on feedstock and lifecycle analysis, HVO can offer up to an 80–90% reduction in CO₂ emissions compared to traditional fossil diesel. When produced from waste-based feedstocks (like used cooking oil or animal fats), these savings are even more impressive.

2. Lower tailpipe emissions.

HVO fuel produces fewer harmful tailpipe emissions – nitrogen oxides (NOₓ), particulates and sulfur dioxide – helping fleets comply with stringent air quality standards and urban low-emission zones. This isn’t merely about ticking boxes, it’s about genuinely cleaner air and healthier environments.

3. Renewable lifecycle.

Thanks to feedstock sourced from renewable waste or certified crops, HVO qualifies under several sustainability frameworks, including the Renewable Transport Fuel Obligation (RTFO) in the UK. This fosters genuine circular-economy benefits and helps decouple transport energy from fossil fuel dependence.

HVO’s operational advantages.

1. Seamless compatibility.

One of HVO’s most compelling advantages is its “drop-in” capability. It can be used in standard diesel engines and existing storage systems without costly modifications – no blending, no hardware changes and no engine warranty concerns.

2. Improved cold-flow properties.

Compared to fatty acid methyl esters (FAME biodiesel), HVO remains stable at lower temperatures, making it reliable even in winter or temperate climates. It resists gelling, sludge and filter clogging.

3. Performance and reliability.

With a high cetane number – comparable to or even higher than regular diesel – HVO delivers smooth ignition, clean combustion and dependable performance under load. For fleet managers, uptime remains uncompromised, with cleaner combustion and reduced maintenance risk.

Economic considerations.

1. Cost vs. value.

HVO typically commands a premium – 30–50% higher cost per litre than standard diesel. But when you factor in carbon savings, grant incentives, green credentials and the avoidance of low-emission zone fees, TCO (Total Cost of Ownership) can shift in HVO’s favour.

2. Incentives and support.

UK Government green initiatives under the Renewable Transport Fuel Obligation (RTFO), such as enhanced Capital Allowances and local incentives, can lower net costs for HVO adopters. Many operators already benefit from reduced fuel duties, business rates relief or local emissions incentives.

3. Long‑term scalability.

As demand for renewable fuels grows, economies of scale may eventually bring down pricing. Investment in HVO derivatives and production technologies, from waste oils to upgraded biogenic lipids, is scaling globally. Early adopters stand to gain both environmental credibility and pricing stability in the long run.

Challenges and limitations of HVO.

Despite its promise, HVO faces some barriers to widespread adoption:

  • Supply constraints: Sustainable feedstocks (like used cooking oil, waste tallow and responsible vegetable oils) are finite. Expanded demand strains supply chains, potentially increasing costs or prompting debates about feedstock sourcing.
  • Lifecycle variability: Not all HVO is created equal. Feedstock source and production method critically influence its carbon intensity score. Buyers must insist on certified feedstocks that meet regulatory sustainability definitions.
  • Price volatility: While government incentives cushion the cost gap, supply-demand dynamics and feedstock pressure can still introduce fuel price fluctuations.

Who should consider HVO fuel?

  • Fleet operators in urban zones: HVO can enable compliance with cities’ low-emission zones without hardware retrofits.
  • Construction and agricultural firms: Those operating off-grid or in transitional regulatory environments can lower carbon impact fast.
  • Event generators or temporary power: Clean power requirements, low smell and quiet combustion make HVO ideal for events.
  • Environmental leaders: Companies pursuing net-zero targets or green procurement can use HVO fuel for genuine, traceable emissions savings.

So, is HVO the future of clean diesel?

HVO is far more than a temporary short-term solution – it is arguably the key bridge fuel on the journey to decarbonised transport and power. As battery-electrics scale for light-duty uses, HVO and other advanced biofuels address the energy gap for heavier power users: haulage, construction, agriculture and remote power generation.

Its drop-in compatibility, significant carbon-cutting power and alignment with sustainability frameworks make it a compelling choice for operators seeking rapid decarbonisation with minimal disruption. But to realise its full potential, stakeholders must address feedstock sourcing, transparent sustainability practices and investment in capacity production.

The role of HVO fuel delivery.

At RSM, we understand that fuel isn’t just a product – it’s your lifeline. That’s why we’re proud to offer HVO fuel delivery services across the UK, designed for consistency, reliability and sustainability. Whether you manage a fleet, run a construction site or organise an event, RSM offers:

  • Optimised logistics to match your schedule and needs
  • Full compliance with safety, certification and traceability standards
  • Transparent pricing with optional carbon reporting to support ESG initiatives

Our team works with you to assess whether HVO is the best fuel for you. We support you at every step, from filling the tank to reducing your environmental footprint.

Accelerate into the clean fuel future with HVO.

The road to a low-carbon world will involve multiple technologies. But for diesel-reliant industries, HVO offers an immediate, credible path to drastic emissions reductions – without forcing fleet or equipment change. As a fuel delivery provider, we’re helping to bring that future directly to your doorstep.

Ready to make the switch? Visit our Fuel Delivery page today to learn more about our clean diesel solutions and how HVO can work for you.