Renewable diesel and Hydrotreated Vegetable Oil (HVO fuel) is an alternative to traditional fossil fuels. However, many ‘myths’ circulate about the fuel and its performance, says Niki Holt, of Certas Energy.
1. Electricity is the only choice for net zero
Integrating more electrification into vehicles and machinery is vital to meet net zero targets, but concerns are holding it back in the commercial space. These tend to focus on insufficient battery range and a lack of robust and accessible charging infrastructure.
While the vehicles and equipment don’t directly produce emissions while running, there will always be byproducts when generating the power, and establishing charging networks can still rely on fossil fuels.
HVO offers significantly lower emissions than traditional fossil fuels and can act as an intermediary between traditional fossil fuels and emission-free electric. While it isn’t completely net zero, it’s an important step for businesses to re-evaluate their carbon footprint.
2. HVO and renewable diesel isn’t cost-effective
As a premium fuel with benefits over and above standard fossil products, the cost per litre of HVO fuel is currently not the same as standard diesel.
However, the price gap is expected to reduce as momentum accelerates to achieve GHG emissions reductions and governments consider additional incentives for renewable fuels.
It’s also worth noting there are zero ‘switch’ costs for changing to HVO from standard diesel. Unlike the often-considerable upfront cost of switching to some other alternative energy options, HVO is a straight ‘drop-in’ fuel.
3. There’s no value in making the transition yet, as it will disrupt my business
Despite the government’s plan for a carbon-neutral future, many businesses won’t see any reasonable benefit in making the switch before it’s a necessity. But we’ve already seen legislative changes being passed, such as Ultra Low Emission Zones (ULEZ) and clean air zones (CAZ) around the country to encourage the incorporation of alternative fuels and help push towards better air quality.
This is only the beginning, and it’s likely we’ll see more changes and restrictions being introduced that will force a much faster adoption of alternative fuels like HVO.
HVO is an attractive alternative to standard diesel, and it’s expected that as more restrictions come into play to support plugging the gap to net zero, getting ahead of the curve and building relationships with supply partners will help businesses to mitigate risks.
This is easier because no modifications to machinery or vehicles are needed, resulting in minimal disruption and cost. This allows for a smooth transition between fuels and enhances productivity.
4. It’s not reliable enough
Reliability is a factor when making commitments to a newer technology. This is why many see fit to stick with traditional fuels like diesel despite emissions, due to the stability of offers.
However, renewable diesel alternatives are being considered by an increasing number of businesses across a wide range of industries, including haulage and logistics, construction, public sector, utilities and marine. Sustainable transport advocates Zemo estimate that as many as 4000 HGVs are now running on renewable diesel.
5. It’s not suitable for my business due to warranties and OEM approvals
While HVO is a suitable fuelling solution for vehicles capable of all terrains, as well as plant and machinery, a common myth is that it’s incompatible with popular original equipment manufacturers (OEMs). This is far from the truth, as most OEMs already have confirmed their approvals of HVO fuel.
