Hydrotreated Vegetable Oil (HVO) has quickly gained attention as a low-carbon, drop-in alternative to diesel. But with fluctuating prices, complex certifications, and growing demand across transport sectors, is now the right time for your fleet to transition?
In our recent FORS webinar, Portland Analytics Director Mike Johnson and FORS Director Geraint Davies shared a comprehensive market update, practical operator insights, and what to look out for when procuring HVO. Watch the full webinar.
What is HVO and why are operators switching?
HVO is a renewable diesel made from waste products like used cooking oil, animal fats and other residues. It offers up to 90% greenhouse gas savings versus fossil diesel and can be used in most modern diesel engines with no modifications.
It’s also an attractive option for FORS operators looking to reduce emissions and stay compliant with environmental standards, without needing to invest in new vehicles or charging infrastructure.
Market trends and pricing pressures
According to Portland Analytics, demand for HVO has risen sharply in the UK, reaching nearly 800 million litres in 2024. However, market pressures, including limited verified feedstock, geopolitical tariffs, and changes in EU biofuel legislation, have pushed wholesale prices up by approximately 20p per litre over the past year.
Despite this, UK operators benefit from the Renewable Transport Fuel Obligation (RTFO), which allows HVO suppliers to generate certificates (RTFCs) that effectively lower the net cost of HVO by around 50p per litre.
FORS directors experience in transitioning to HVO
Geraint Davies shared his experience using HVO as COO at John Raymond Transport. His fleet of 44-tonne trucks saw a slight improvement in fuel economy and a noticeable drop in AdBlue usage when using HVO.
“It’s the lowest of the low-hanging fruit for fleet decarbonisation,” said Davies. “It’s cleaner, efficient, and gives customers confidence in your environmental efforts.”
However, he cautioned that while HVO is drop-in compatible, older vehicles should be tested carefully, and fuel cards for HVO remain limited, bulk supply is currently the most reliable option.
What operators should consider when buying HVO
- Ask for RFAS certificates: These confirm the origin and emissions profile of your HVO.
- Request waste-based feedstocks: Used cooking oil and tallow offer the highest GHG savings.
- Check your contracts: HVO is increasingly priced against wholesale indices rather than diesel plus fixed premiums.
- Consider timing: If you want a diesel-plus pricing mechanism, you may need to act before the market shifts.
Support from the FORS Fuel Advisory Service
Whether you’re exploring HVO for the first time or reviewing current supply, the FORS Fuel Advisory Service, powered by Portland Analytics, offers free, 30-minute consultations for FORS operators. Watch the full webinar. If you’d like more information, contact Portland Analytics at [email protected] or visit their partner page https://www.fors-online.org.uk/cms/fors-fuel-advisory-service/.