With the ban on new petrol and diesel vehicles fast approaching, businesses need to start considering greener alternatives for their fleets before 2030.
EV technology is currently the most accessible option for businesses, as its development has been the primary focus for vehicle manufacturers and government policies over the last few years. However, electric vehicles are not always the most suitable option for fleets, particularly for larger vehicles such as HGVs and specialist construction vehicles.
As there are still barriers that need to be overcome with EVs, options such as E10 fuel have been created with the goal of becoming more environmentally friendly. However, we at Right Fuel Card have looked at a range of alternative fuels that could be considered, with some potentially becoming commonplace in the future if the infrastructure is developed.
In this guide, we’ll analyse the available alternative fuel types for cars and consider how they could benefit businesses looking to reduce their carbon emissions.
What are alternative fuels?
Firstly, we should cover what alternative fuels are, so that you have a better understanding of what this guide will cover.
Essentially, alternative types of fuels are energy or power sources that are a substitute for standard fossil fuels like petrol and diesel. Alternative fuels have a lower environmental impact as they are based on renewable resources or biomass, meaning they don’t produce as many greenhouse gases (GHGs).
Businesses are increasingly considering alternative fuel options as there is more focus on reducing carbon footprints and addressing climate change. When you combine this with the government’s planned 2030 ban on the sale of new petrol and diesel cars, there’s certainly encouragement for companies to move in this direction.
Types of alternative fuels explained
Now that you know what they are, let’s discuss the different types of alternative fuels for cars currently available on the market. This will allow you to better understand the options that businesses have should they choose to move away from traditional fossil fuels.
EV
Electric vehicles are powered by an electric motor and produce zero emissions while driving. This makes them an appealing option for businesses as they can save money on fuel and improve their reputation by having a greener fleet.
There are currently over 1,850,000 fully electric vehicles on UK roads, and this number is expected to grow substantially over the next few years as more models become available.
EVs will likely play a significant role in decarbonising fleets that have cars and LCVs, as they’re currently the most accessible alternative fuel. The technology is also being developed so that it can be used effectively by more drivers, even on long-distance journeys.
Hydrogen
Hydrogen is a clean fuel that only emits water vapour from the tailpipe. Unlike EVs, which rely on a battery, the electricity for hydrogen vehicles is generated through a chemical reaction between oxygen and hydrogen in a fuel cell stack.
Hydrogen is considered likely to be the future fuel of choice for HGVs, as the technology is more practical for larger vehicles than electric ones and will help businesses to reduce the carbon emissions of their fleet.
HVO fuel
HVO (hydrotreated vegetable oil) fuel is made from vegetable oils and animal fats and can be blended with fossil diesel or used as a complete eco-replacement.
HVO fuel is already being used by large companies such as McDonald’s, and it’s expected to become a more mainstream fuel in the near future. This is because it’s both practical and beneficial for the environment, so there is significant interest in using it to decarbonise fleets.
Discover our guide to HVO fuel and learn how this business-ready alternative fuel can help your operations become greener.
Biodiesel
Biodiesel is a renewable fuel source that is made from vegetable oils, animal fats, or recycled restaurant grease. Although often confused with HVO fuel, biodiesel contains oxygen and cannot act as a 100% substitution for fossil diesel, as nearly all OEMs limit biodiesel content to 20%.
Biodiesel can, however, be used as a transition fuel to help reduce the carbon emissions of businesses that are not yet ready to make the switch to hydrogen or electric.
Many industries are also already using biodiesel for their vehicles, and the demand is only growing.
Advantages and disadvantages of alternative fuels
There are plenty of benefits for making the change over to alternative fuels; however, they aren’t all perfect. Below, we will summarise the advantages and disadvantages of each alternative fuel we’ve discussed so far, in order for you to be able to decide which is the best option for your business.
Advantages of electric vehicles:
EVs are a great option for multiple reasons. For example, they have no fuel emissions, so they contribute no GHGs and have lower running costs than Internal Combustion Engine (ICE) vehicles, as they have fewer moving parts to repair.
Additionally, from April 2026, new EV purchases will only have to pay £10 in road tax for the first year, before then paying the standard rate of around £200. Considering they have no carbon emissions, they’re also exempt from congestion charges in Ultra Low Emission Zones (ULEZ), meaning savings can be made here too.
Disadvantages of electric vehicles:
Though EVs have their positives, they’ve also got some limitations that you should be aware of. Factors such as a slower charging time mean that extra preparation is needed if they’re part of your fleet to ensure they’re ready to complete any journeys. The technology and infrastructure for EVs still need development as they’re not yet suitable for HGVs or drivers who regularly embark on long journeys.
Though their range is improving, EV range anxiety is an issue, as these vehicles can have a more limited driving range than vehicles using traditional fuels (90-530 miles). Then, with a higher base purchase price, more money will be required upfront to access them as well.
Advantages of hydrogen fuel:
When it comes to hydrogen-powered vehicles, they benefit from having a renewable energy source, meaning that they’re a sustainable form of power. Then with a fast refuelling time (five minutes) and a long driving range, they’re easy to run and are capable of longer journeys. Combine this with zero emissions as well, and they’re an ideal choice in this regard.
Disadvantages of hydrogen fuel:
As much as the energy source itself is great, accessing the vehicles that can use it is more of a challenge. There’s a limited selection of vehicles that can use hydrogen fuel and a lack of refuelling infrastructure to sustain their use, with just 16 hydrogen fuel stations across the UK.
As the vehicles themselves are also expensive to produce and purchase, they aren’t yet capable of being mass-produced for wider usage.
Advantages of HVO fuel:
One of the best benefits of HVO fuel is that it’s a drop-in fuel, meaning that businesses don’t have to make significant modifications to their engines or infrastructure in order to use it. With up to ten years of shelf life, they have great longevity and are both renewable and sustainable.
Disadvantages of HVO fuel:
Though it’s close to a straight swap with more traditional fuel types for cars, it’s not widely available and is also more expensive. Pairing this with the quality of the fuel being inconsistent, it’s not always reliable if you can get your hands on it.
Advantages of biodiesel:
Looking at biodiesel, it can be used in existing diesel engines, meaning that no modifications are required if you decide to change to this fuel. Because they’re produced from renewable resources, they’re also sustainable for long-term use. Finally, it’s been reported that it reduces GHG emissions by up to 78% compared to regular diesel.
Disadvantages of biodiesel:
Biodiesel does have some drawbacks, though, as it can’t be used in low temperatures, making it more restricted. It’s also an expensive fuel source to use and still has environmental concerns, with increased nitrogen oxide emissions that will contribute to air pollution and potentially lead to acid rain.
Choosing the right alternative fuel for your business
When it comes to choosing the right fuel for your fleet, there are now more options than ever for businesses looking for greener fuels. However, it’s important to do research before making the switch from petrol and diesel, as each alternative fuel has its pros and cons, and some may not be suitable for your fleet.
Ultimately, the best option for your fleet will depend on the vehicles that are used, your budget and the nature of your business. You may even find that it’s more practical to have different vehicles using different fuels.
Regardless of which of these fuels you choose to use, you’ll be helping to reduce your carbon emissions and preparing your fleet for the upcoming ban on the sale of new petrol and diesel vehicles, benefiting your business in the long run.
How Right Fuel Card can help you with alternative fuels
As businesses will be using a range of different fuels in the future, we’re looking to introduce a wider selection of fuel cards that can be used by a variety of vehicles. We’ve recently introduced an EV alternative to help ease the transition to electric. Apply for the BP Fuel and Charge card or the Shell Recharge Fuel and EV card online.
We here at Right Fuel Card can support your business in making the change to alternative fuels. By getting a fuel card, you can help your business:
Improve fuel cost visibility and spend control
Simplify multi-fuel management
Consolidate reporting into one VAT-compliant invoice
In the meantime, our extensive range of fuel cards, or fuel cards for small businesses, can save your company time and money. Contact our friendly team, who are on hand to discuss your options and help you discover which fuel card is best for your business.
