Green Diesel & HVO Fuel: The Sustainable Future of UK Road Transport

What is HVO Fuel?

Hydrotreated Vegetable Oil (HVO) is a renewable, second-generation biodiesel produced by treating vegetable oils, animal fats, or other waste lipids with hydrogen at high temperature and pressure. Unlike first-generation FAME biodiesel (which blended vegetable oil esters into conventional diesel), HVO undergoes a more thorough chemical transformation that produces a fuel with properties almost identical to conventional fossil diesel — but derived from sustainable feedstocks.

HVO is often called a "drop-in fuel" because it can be used in existing diesel engines without any modification. It meets the European standard EN 15940 for paraffinic diesel fuels, and major engine manufacturers including Volvo, DAF, Mercedes-Benz, and Caterpillar have approved its use in their engines. Common feedstocks include used cooking oil (UCO), tallow from the food processing industry, palm fatty acid distillate (with sustainability certification required), and increasingly, purpose-grown energy crops where land-use conflicts are minimised.

Carbon Savings vs Regular Diesel

The carbon savings from HVO depend on the feedstock used. HVO produced from used cooking oil (the most common UK source) achieves lifecycle carbon savings of 80–90% compared to fossil diesel on a well-to-wheels basis. This means that for every 100 tonnes of CO2 equivalent emitted by fossil diesel, the same energy output from UCO-based HVO produces only 10–20 tonnes. For fleet operators with Scope 1 emissions reporting obligations, switching to HVO can dramatically reduce reported carbon footprint without any change to vehicles or operations.

The at-exhaust emissions of HVO are also lower than fossil diesel — particulate matter is reduced by approximately 30% and NOx by around 9%, both of which are particularly relevant for urban air quality and potential Clean Air Zone compliance.

Vehicle Compatibility

HVO is compatible with the vast majority of diesel engines manufactured in the past 20 years. Engine manufacturers who have explicitly approved HVO use include Volvo Trucks, DAF Trucks, Scania, MAN, Mercedes-Benz Trucks, JCB, Caterpillar, and Perkins. For passenger cars and vans, compatibility is generally high but varies by manufacturer — Ford, Volkswagen Group, and Stellantis vehicles with modern diesel engines are typically compatible, but you should check your vehicle's handbook or contact the manufacturer before switching.

Unlike FAME biodiesel, HVO does not have cold weather performance issues (FAME can gel at low temperatures), does not degrade in storage, and does not affect fuel filter life. It can be stored for up to 10 years without degradation — a significant advantage for emergency generators and backup fuel tanks.

HVO Cost vs Regular Diesel

HVO currently costs approximately 20–35p per litre more than conventional diesel at UK forecourts and bulk supply points. At a March 2026 diesel price of 182.7p, this places HVO at approximately 203–218p per litre. For consumer use at retail forecourts, this premium is significant. For fleets with sustainability obligations or carbon reporting requirements, the premium may be justified — particularly if it avoids the need to purchase carbon offsets at comparable cost. The premium is expected to narrow over the next 5 years as production capacity expands and feedstock supply chains mature.

Where to Find HVO in the UK

HVO retail availability in the UK is growing but remains limited compared to conventional diesel. The primary routes to access HVO are: Certas Energy and Crown Oil (bulk delivery for fleets, typically minimum 1,000 litre orders), Greenergy and Neste (wholesale supply to fuel distributors), a small but growing number of public forecourts — primarily at motorway services and truck stops operated by Moto and Welcome Break — and specialist agricultural and construction fuel suppliers. FuelFinderLive is working to incorporate HVO availability data into its platform as the network expands.

UK Regulations & RTFO

HVO sold in the UK counts towards obligations under the Renewable Transport Fuel Obligation (RTFO), which requires fuel suppliers to blend or supply a minimum percentage of renewable fuels. Suppliers receive Renewable Transport Fuel Certificates (RTFCs) for HVO sold, which they can use to meet RTFO obligations or sell to other obligated parties. For fleet operators, purchasing HVO may generate RTFCs that can be sold, partially offsetting the price premium. The UK government's Green Fuels, Green Skies consultation and subsequent policy confirm that HVO from sustainable feedstocks will remain a supported pathway for decarbonising road transport through at least the early 2030s.

The Future of Green Diesel in UK Transport

HVO is not the long-term answer for all road transport decarbonisation — the feedstock supply is ultimately limited, and the UK cannot grow or collect enough waste oil to replace all diesel consumption. However, it represents a pragmatic near-term solution for sectors that cannot easily electrify: heavy goods vehicles with long ranges, construction and agricultural equipment, marine applications, and off-grid power generation. The Department for Transport's Road to Zero strategy positions HVO alongside battery electric vehicles as a complementary pathway, with the government supporting HVO for heavier applications while mandating battery EVs for cars and vans via the ZEV mandate. Expect to see HVO increasingly available at UK truck stops and fleet depots through 2027–2030 as infrastructure investment responds to commercial demand.