Many businesses are now starting to consider greener alternatives for their fleets to ensure that they’re prepared for the upcoming ban on new petrol and diesel vehicles. Alternative fuels are therefore rising in popularity; however, they each have their own benefits and challenges, so it’s important that you choose the fuel type that can best fulfil the needs of your fleet.
Previously, we’ve analysed the range of alternative fuels that are available to businesses. In this guide, we will be focusing on HVO to give you a better understanding of how it works. We explore what HVO fuel is as well as some HVO fuel benefits, to help you decide whether it’s the right choice for you.
What is HVO fuel?
Hydrotreated vegetable oil, otherwise known as HVO, is a renewable diesel which is made from processed vegetable oils or animal fats.
HVO can be used as a drop-in substitute for diesel, so there is no need to change the current infrastructure or vehicle. This makes it a viable choice for businesses, particularly as it also has a long shelf life and can reduce greenhouse gas emissions by up to 90%.
Why has HVO fuel become more popular in the UK?
The UK Government has committed to achieving net zero greenhouse gas emissions by 2050, and as part of this strategy, the sale of new petrol and diesel cars and vans will be banned from 2035.
HVO fuel is therefore rapidly gaining popularity, especially among commercial fleets and the construction industry. While it’s not a zero-emission fuel, it supports immediate carbon reduction within existing diesel fleets, helping businesses align with national sustainability targets.
For many, HVO acts as a stepping stone, enabling emissions savings while preparing for fleet electrification in the future.
What are the differences between HVO and biodiesel?
HVO is often confused with biodiesel, as they are both fossil-free alternatives to conventional diesel. Although they are both produced from renewable sources, their production process is different, and they are also subject to different fuel standards.
HVO fuel uses hydrogen as a catalyst, whereas biodiesel uses methanol in the esterification process. This prevents HVO fuel from oxidising or degrading, so it can be used as a complete replacement for diesel and can be stored for several years without lessening the quality of the fuel.
However, biodiesel contains oxygen and so cannot act as a 100% substitution for fossil fuel, as biodiesel content is limited to 20% by most Original Equipment Manufacturers (OEM).
HVO vs diesel fuel
When deciding when to transition your fleet, it’s important to understand how HVO compares with traditional diesel.
HVO is typically more expensive than standard diesel in the UK. However, while HVO has a higher purchase price, for many businesses, the environmental benefits outweigh this additional cost. Here are some key factors to bear in mind when deciding between HVO vs diesel:
Diesel:
Widely available across the UK
Established infrastructure and vehicle compatibility
Higher emissions
HVO fuel:
Can reduce greenhouse gas emissions by up to 90%
Higher stability, lasting up to 10 years in storage
Typically more expensive, although prices may decrease with growing availability
For those looking to make immediate carbon reductions, HVO offers a practical transitional solution. Diesel, on the other hand, remains lower cost and is more widely accessible.
Why is HVO more sustainable than diesel?
1. Fossil-Free & Waste-Based
HVO is made from 100% renewable feedstocks, often derived from waste products like:
Used cooking oil.
Animal fats.
Residual vegetable oils.
This means it doesn’t rely on fossil extraction and often repurposes waste that would otherwise be discarded.
2. Lower lifecycle emissions
HVO can reduce lifecycle greenhouse gas emissions by up to 90% compared to standard diesel.
While tailpipe CO₂ emissions are similar, the overall carbon footprint is significantly lower because the carbon released was originally absorbed by the plants used to make the fuel.
3. Cleaner Combustion
HVO contains no sulphur or aromatics, and burns more cleanly than fossil diesel. This results in:
Lower NOx and particulate emissions.
Reduced engine deposits.
Improved air quality is especially important in urban environments.
4. No Infrastructure Changes
Because HVO is chemically similar to diesel, it can:
Be stored in the same tanks.
Use the same fuel cards and pumps.
Run in the same engines.
This makes it an effective transition fuel for fleets not yet ready to go fully electric.
Why HVO matters for HGV fleets
For fleets that rely on diesel vehicles, especially HGVs and long-haul transport, HVO offers a practical, immediate way to reduce emissions without the cost and complexity of switching to EVs. It’s particularly useful for:
Mixed fleets transitioning gradually to electric
Remote or rural operations where EV charging is limited
Backup generators and off-road equipment
HVO offers a low-disruption, high-impact way to cut emissions:
Drop-in ready: No need to retrofit vehicles or change infrastructure.
Cleaner combustion: Lower NOx and particulate emissions improve air quality.
Cold weather performance: Superior to biodiesel, with excellent cold-start reliability.
Sustainable sourcing: Produced from waste products, not crops, avoiding food chain disruption.
In short, HVO is a practical stepping stone for fleets that want to reduce emissions now—without waiting for EV infrastructure to catch up.
How can businesses transition to HVO fuel?
As HVO fuel is a suitable drop-in replacement for conventional diesel, it’s simple for businesses to make the transition as there’s no need to invest in new, expensive equipment or vehicles.
HVO fuel can also be blended into the tank at any ratio without affecting performance or reliability. This means that businesses do not need to drain their fuel tanks before using HVO, as it can be added freely, even if you still have some diesel left, so the transition can be completed immediately.
How can businesses benefit from using HVO fuel?
HVO fuel will undoubtedly have a prominent role in the future of transport as it offers businesses many benefits. Top HVO fuel benefits include:
Environmentally friendly – HVO fuel is made from sustainable and renewable materials, so businesses can reduce their carbon emissions. In addition, the use of greener vehicles will improve brand reputation, which could help to boost the profits of your company.
Long storage life – HVO fuel can be stored for up to 10 years, which is considerably longer than conventional diesel, which can only be stored for up to 12 months.
Low viscosity levels – Unlike EV technology, which can be negatively impacted by extreme temperatures, HVO fuel can be used all year round as it stays mobile and filterable even at temperatures of -32°C.
Simple transition for drivers – As previously mentioned, HVO fuel can be used in existing equipment and vehicles. Not only will this save businesses money, but drivers will be able to quickly refuel as before without needing any additional safety training. This will result in less downtime than electric vehicles, which can take a considerable amount of time to recharge.
What are the challenges of using HVO fuel for businesses?
Despite the benefits of HVO fuel, there are some limitations that businesses need to be aware of. The main challenges of HVO fuel are:
Inaccessibility – When compared to the rest of the EU, the supply of HVO is undeveloped, and so many smaller businesses in the UK are unable to utilise it for their fleets. However, HVO fuel is currently more accessible than hydrogen technology, and businesses do not need to rely on an infrastructure being developed before they can use it.
High cost – The price of HVO is currently higher than that of conventional diesel. However, this cost is still lower than investing in new hydrogen or electric vehicles.
Incompatible with some vehicles - Businesses need to ensure that they get written confirmation that HVO is approved for use in their specific vehicles before they refuel. As some manufacturers have not endorsed the use of HVO, you could invalidate the warranty of your vehicle if approval is not obtained first.
HVO fuel is already being used by large companies across the UK, such as McDonald’s, because it offers an emission-free alternative to diesel without needing to change fleet vehicles or the refuelling infrastructure. Although HVO fuel will help to decarbonise the fuel industry, it’s currently too inaccessible to be used on a wide scale.
Businesses that can produce HVO fuel themselves will benefit the most as they’ll be able to keep costs down and have an unlimited supply. However, many businesses will struggle to source enough HVO to fuel their entire fleet, plus the high purchase cost will be difficult for those that are already struggling with the current cost-of-living crisis.
We understand that more businesses will begin to switch to alternative fuels for their fleets soon, so we have introduced new EV charge cards to ease the transition.
However, if your fleet still contains petrol and diesel vehicles then explore our current range of fuel cards today by using our fuel card comparison tool. You can also explore our complete fuel card guide for more insights.
Alternatively, if you’d like to find out more information about our services and products, then contact our friendly team at 0113 202 5110.
