The Role of HVO in the UK Renewable Fuel Mandate

In the United Kingdom’s pursuit of a cleaner and greener energy future, renewable fuels have taken centre stage. Among the various options available, Hydrotreated Vegetable Oil (HVO) has emerged as a key player — particularly in fulfilling the country’s Renewable Transport Fuel Obligation (RTFO) and broader Renewable Fuel Mandate goals. This article explores the pivotal role HVO plays in the UK’s renewable energy landscape, its advantages, regulatory framework, and why industries and individuals are increasingly turning to this alternative fuel.

What is HVO Fuel?

Hydrotreated Vegetable Oil (HVO) is a synthetic paraffinic diesel made from 100% renewable raw materials, such as waste vegetable oils, animal fats, and used cooking oil. Through a process called hydrotreatment, these materials are refined into a clean, high-performing fuel that can directly replace conventional diesel without modifications to engines.

Unlike FAME biodiesel, HVO is free of oxygen, sulphur, and aromatics, which results in improved storage stability, combustion quality, and lower emissions.

The UK’s Renewable Fuel Mandate: A Quick Overview

The UK government has implemented several policies to reduce greenhouse gas (GHG) emissions, with the Renewable Transport Fuel Obligation (RTFO) at the heart of its transport sector strategy. Established in 2008 and regularly updated, the RTFO requires fuel suppliers to ensure a certain percentage of the fuel they supply comes from renewable sources.

As of recent updates:

  • Fuel suppliers must meet a minimum renewable content target, rising incrementally each year.
  • Greenhouse gas savings thresholds are enforced to ensure the renewability has real climate benefits.
  • Double reward certificates are offered for fuels made from waste or residues, such as HVO.

This is where HVO fits in seamlessly — ticking every box for compliance, sustainability, and performance.

Why HVO Fuel is Gaining Traction in the UK

1. Compliance with RTFO Requirements

HVO meets — and often exceeds — the sustainability and performance requirements set out in the RTFO. Since it’s produced from waste oils and fats, it qualifies for double-counting towards suppliers’ renewable fuel targets, making it highly attractive to fuel distributors looking to meet their mandates efficiently.

2. High Greenhouse Gas Savings

HVO can achieve up to 90% reduction in GHG emissions compared to fossil diesel. This makes it one of the most environmentally beneficial diesel alternatives available on the UK market.

3. Drop-in Compatibility

Unlike FAME biodiesel, HVO can be used as a direct drop-in fuel for existing diesel engines. It meets EN 15940 specifications and requires no alterations to infrastructure, vehicles, or storage facilities — reducing conversion costs for businesses.

4. Improved Air Quality

HVO emits significantly lower levels of:

  • Particulate matter (PM)
  • Nitrogen oxides (NOx)
  • Carbon monoxide (CO)

This makes it ideal for urban operations, construction sites, and low-emission zones.

5. Excellent Cold Weather Performance

With better cold flow properties than biodiesel, HVO remains stable and operational in sub-zero UK winter temperatures — ideal for remote or rural settings.

Industries Embracing HVO in the UK

A growing number of sectors are adopting HVO to align with sustainability goals and regulatory requirements, including:

  • Transport & Logistics: Fleets are switching to HVO for cleaner deliveries and lower carbon footprints.
  • Construction: With tighter emissions rules on sites, HVO helps meet environmental standards.
  • Agriculture: Farmers benefit from reduced emissions and reliable cold-start performance.
  • Events & Generators: HVO is a preferred fuel for outdoor events, backup generators, and mobile power units.

The Government’s Endorsement of HVO

The UK government has signalled strong support for renewable fuels, including HVO, through:

  • Incentives and certifications under the RTFO
  • Carbon reduction commitments in the transport and heating sectors
  • Consultations on phasing out fossil fuels and expanding renewable adoption

With the Net Zero 2050 target on the horizon, HVO’s role is only set to grow.

The Road Ahead: Challenges and Opportunities

Opportunities

  • Increased demand for sustainable fuels in off-grid heating, marine transport, and railways.
  • Decarbonising hard-to-electrify sectors such as construction and agriculture.
  • Collaborations with HVO producers like Neste, Green Biofuels, and domestic refiners.

⚠️ Challenges

  • Limited domestic production capacity in the UK.
  • Dependence on imported feedstock, which could be impacted by global market fluctuations.
  • Public awareness and accessibility need improvement for widespread adoption.

Nonetheless, as the UK refines its renewable fuel strategy, these challenges are expected to be addressed through investment, policy, and innovation.

Final Thoughts: HVO as a Cornerstone of UK Renewable Fuel Strategy

HVO is more than just an alternative diesel — it’s a strategic enabler of the UK’s renewable fuel ambitions. By aligning perfectly with the RTFO requirements, offering real-world emissions reductions, and providing seamless integration into existing diesel systems, it presents a scalable and practical solution for today’s decarbonisation challenges.

Whether you’re a fleet manager, construction firm, or policy maker, now is the time to consider how HVO can play a role in your sustainability roadmap — because the UK’s path to net zero depends on smart, clean, and immediate solutions like this.

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