What is HVO renewable diesel?

HVO (Hydrotreated Vegetable Oil) is a renewable diesel produced by hydroprocessing vegetable oils, animal fats, or used cooking oil (UCO) with hydrogen to remove oxygen and produce straight-chain paraffinic hydrocarbons — chemically similar to fossil diesel. Unlike FAME biodiesel (which is an ester), HVO is a true 'drop-in' fuel: it is chemically almost identical to fossil diesel, can be used in any diesel engine without modification, has excellent low-temperature performance, and can be blended in any proportion with fossil diesel or used as 100% HVO (HVO100). Major producers include Neste (Finland), TotalEnergies (La Mède refinery, France), ENI (Venezia), and UPM Biofuels (Finland).

How much CO2 does HVO save compared to fossil diesel?

HVO's lifecycle CO2 savings versus fossil diesel depend on the feedstock used. Using waste-based feedstocks (used cooking oil, animal fat): approximately 80–90% lifecycle CO2 reduction versus fossil diesel on a well-to-wheel basis. Using virgin vegetable oils (palm oil, soy, rapeseed): approximately 40–70% reduction, though the indirect land use change (ILUC) impacts are contested and can significantly reduce the net saving. The EU Renewable Energy Directive (RED II/III) assigns different greenhouse gas saving factors to each feedstock, with waste-based UCO/animal fat HVO receiving the highest scores. HVO100 (100% HVO) from waste feedstocks can claim near-zero tailpipe carbon under current EU accounting.

Is HVO available at UK and European petrol stations?

HVO100 (100% HVO renewable diesel) availability at public retail forecourts is limited but growing rapidly. In the UK, approximately 300–400 forecourts offered HVO100 by 2026, primarily at specialist independent stations and some supermarket sites. In Europe, Sweden leads with 500+ HVO100 sites; Finland and the Netherlands also have significant networks. HVO is more widely available in B20/B30 blends mixed with fossil diesel. For fleet operators, HVO100 is increasingly available through bulk delivery and commercial pump networks. Price premium: HVO100 typically costs 10–25 ct/litre more than fossil diesel at the pump in the UK/Europe in 2026.

Is HVO compatible with all diesel engines?

Yes. HVO is a paraffinic hydrocarbon chemically nearly identical to fossil diesel, compatible with all diesel engines at any blend ratio including 100% HVO (HVO100). No engine modifications are required and it does not void manufacturer warranties. This is a key advantage over FAME biodiesel, which is limited to B7 in most modern engines.

How much more expensive is HVO than regular diesel?

HVO100 typically costs 10-25 cents per litre more than fossil diesel at UK and European forecourts. The premium reflects higher feedstock costs and limited production capacity. For fleet operators buying in bulk, the premium can narrow to 5-15 cents/litre. The premium is shrinking as major producers expand capacity.

HVO Renewable Diesel Guide: What Is HVO, Cost, Availability & Carbon Savings

Published 1 October 2026 · Updated 19 October 2026

Hydrotreated Vegetable Oil (HVO) is gaining rapid traction across Europe and the UK as a drop-in replacement for fossil diesel that offers substantial lifecycle carbon savings without requiring any vehicle modification. Unlike E10 or biodiesel blends, HVO100 (100% HVO) can be used in any diesel engine, has excellent cold weather performance, and is available in bulk for commercial fleet operators. This guide covers everything you need to know about HVO — from the chemistry to the cost.

For live diesel prices to compare against HVO costs, use the fuel price explorer. For biodiesel context, see our biodiesel glossary entry. For the biofuels policy context, see our biofuel guide.

What is HVO and how is it made?

HVO is produced by hydroprocessing (treating with hydrogen at high pressure) organic fats and oils:

Feedstocks — typically used cooking oil (UCO), tallow (animal fat), palm fatty acid distillate (PFAD), or virgin vegetable oils — are fed into a hydrotreatment reactor
Hydrogen removes the oxygen from the triglyceride molecules, breaking them into paraffinic hydrocarbons
The resulting hydrocarbons are refined to diesel specifications (cetane number, cloud point, distillation range)
The product is chemically nearly identical to fossil-origin diesel — a true "drop-in" fuel

Key producers: Neste (Finland — world's largest HVO producer, Porvoo and Singapore refineries), TotalEnergies (La Mède, France), ENI (Porto Marghera/Venezia, Italy), UPM Biofuels (Finland), and Diamond Green Diesel (USA).

HVO vs FAME biodiesel: the key differences

Property	HVO (Hydrotreated Vegetable Oil)	FAME Biodiesel (B7/B20/B100)
Chemistry	Paraffinic hydrocarbons (iso/n-paraffins)	Fatty acid methyl esters (FAMEs)
Drop-in capability	Yes — any diesel engine, any blend ratio	Limited — B7 max for most modern engines without issues
Cold temperature performance	Excellent (cloud point can be as low as –30°C)	Poor (gels at temperatures above fossil diesel)
Energy density	~33.5 MJ/litre (similar to fossil diesel)	~32.8 MJ/litre
Cetane number	70–90 (significantly higher than fossil diesel ~51)	48–58
Oxidation stability	Excellent (can be stored long-term)	Poor (degrades over time)
Water absorption	Low (similar to fossil diesel)	Higher (can absorb moisture)
Price premium	~10–25 ct/l above fossil diesel	~3–8 ct/l above fossil diesel at B7

HVO lifecycle carbon savings

Feedstock	Lifecycle CO2 saving vs fossil diesel	RED III accounting
Used cooking oil (UCO)	~85–90%	Highest GHG saving; double-counted in blending mandates
Animal fats (tallow, lard)	~75–85%	High GHG saving; also double-counted
Palm fatty acid distillate (PFAD)	~45–55%	Not double-counted; ILUC concerns
Virgin rapeseed oil	~40–55%	ILUC deduction may reduce net saving
Soy oil	~25–40%	High ILUC factor; limited EU use

The UCO supply constraint
Used cooking oil (UCO) from restaurants and food processors is the most carbon-efficient and policy-preferred HVO feedstock. But global UCO supply is limited — estimated at approximately 3–5 million tonnes per year globally, far below what would be needed for large-scale fossil diesel displacement. This supply constraint is the primary reason HVO cannot fully replace fossil diesel at current scales. It also creates fraud risk — "UCO" certificates have been falsified in some supply chains. EU authorities have tightened mass-balance and certification requirements under RED III to address this.

UK and European HVO availability (2026)

Country	HVO100 public forecourts (approx.)	Bulk/fleet access
Sweden	500+	Widely available; St1, Circle K, Preem networks
Finland	300+	Neste domestic market; well established
Netherlands	200+	Shell, TotalEnergies HVO hubs; growing
UK	300–400	Growing rapidly; Certas, Crown Oil bulk delivery
Germany	100–200	Limited retail; strong fleet/logistics uptake
France	100–150	TotalEnergies La Mède production supports French market
Italy	50–100	ENI Venezia production; limited retail

Fleet and off-road applications

HVO100 is particularly compelling for fleet operators and off-road diesel users:

Road haulage (HGVs): Direct drop-in replacement; no engine modification, no DEF (AdBlue) impact. Many UK and European logistics companies (DHL, Tesco, Royal Mail) have trialled or adopted HVO100 fleets
Construction equipment: Off-road machinery (excavators, generators) can use HVO100 directly; REGO certificates available for carbon reporting
Shipping/marine: HVO can be used in marine diesel engines; relevant for inland waterway and short-sea vessels transitioning from fossil diesel
Rail: Network Rail (UK) has trialled HVO100 for non-electrified routes as a decarbonisation bridge
Aviation: Technically possible as SAF (Sustainable Aviation Fuel) component, though jet fuel certification requirements differ from road HVO

For diesel vs petrol decisions for road vehicles, see our diesel vs petrol guide. For trucking fuel cost context, see our trucking fuel costs guide.

HVO fuel price, compatibility, and renewable diesel explained

Renewable diesel is a broad term for diesel fuel produced from renewable feedstocks (vegetable oils, animal fats, waste oils) through hydroprocessing — as distinct from FAME biodiesel which is produced through transesterification. HVO is the most common form of renewable diesel sold in Europe. The renewable diesel price reflects the premium feedstock cost and limited production capacity: HVO100 typically costs 10-25 cents per litre more than fossil diesel at the pump, though this premium has been narrowing as production capacity expands (Neste alone added 1.3 million tonnes of capacity at its Singapore facility in 2023). The IEA Renewables report tracks global HVO production capacity and investment.

HVO fuel compatibility is one of its strongest advantages over FAME biodiesel. Because HVO is a paraffinic hydrocarbon — chemically nearly identical to the paraffin fraction of fossil diesel — it is compatible with all diesel engines at any blend ratio, from B0 (0% biodiesel baseline + HVO) to HVO100 (100% HVO). No engine modifications, no warranty issues, no fuel system degradation. HVO100 fuel also has superior cold-weather performance (cloud point as low as -30°C vs approximately -5°C for standard fossil diesel) and excellent oxidation stability (no degradation in long-term storage, unlike FAME which absorbs moisture and oxidises). The high cetane number of HVO (70-90 vs 51 minimum for fossil diesel) means engines often run more smoothly and quietly on HVO100. The EU Renewable Energy Directive (RED III) framework governs how HVO counts toward national renewable fuel obligations, with waste-based HVO receiving double-counting credit.

Frequently asked questions

What is HVO renewable diesel? HVO (Hydrotreated Vegetable Oil) is renewable diesel produced by hydroprocessing vegetable oils, animal fats, or used cooking oil with hydrogen. The result is paraffinic hydrocarbons chemically similar to fossil diesel — a true drop-in fuel usable in any diesel engine at any blend ratio. It has higher cetane, better cold performance, and longer storage life than FAME biodiesel. Major producers: Neste, TotalEnergies, ENI.: HVO (Hydrotreated Vegetable Oil) is renewable diesel produced by hydroprocessing vegetable oils, animal fats, or used cooking oil with hydrogen. The result is paraffinic hydrocarbons chemically similar to fossil diesel — a true drop-in fuel usable in any diesel engine at any blend ratio. It has higher cetane, better cold performance, and longer storage life than FAME biodiesel. Major producers: Neste, TotalEnergies, ENI.
How much CO2 does HVO save compared to fossil diesel? HVO from used cooking oil (UCO) or animal fat saves approximately 80–90% of lifecycle CO2 versus fossil diesel. Virgin vegetable oil HVO saves 40–55%, with ILUC (indirect land use change) potentially reducing the net saving. Under EU RED III, UCO and animal fat HVO count double in renewable fuel blending obligations, reflecting their waste-origin status. The primary limit is UCO supply scarcity — not technology.: HVO from used cooking oil (UCO) or animal fat saves approximately 80–90% of lifecycle CO2 versus fossil diesel. Virgin vegetable oil HVO saves 40–55%, with ILUC (indirect land use change) potentially reducing the net saving. Under EU RED III, UCO and animal fat HVO count double in renewable fuel blending obligations, reflecting their waste-origin status. The primary limit is UCO supply scarcity — not technology.
Is HVO available at UK and European petrol stations? HVO100 public retail is growing but limited: ~300–400 UK forecourts, 500+ in Sweden, 300+ in Finland, 200+ in Netherlands. Bulk/fleet delivery is more widely available. HVO100 carries a premium of ~10–25 ct/litre over fossil diesel at the pump. Fleet operators (logistics, construction, rail) are the primary early adopters, using bulk HVO delivery contracts.: HVO100 public retail is growing but limited: ~300–400 UK forecourts, 500+ in Sweden, 300+ in Finland, 200+ in Netherlands. Bulk/fleet delivery is more widely available. HVO100 carries a premium of ~10–25 ct/litre over fossil diesel at the pump. Fleet operators (logistics, construction, rail) are the primary early adopters, using bulk HVO delivery contracts.
Is HVO compatible with all diesel engines? Yes. HVO is a paraffinic hydrocarbon chemically nearly identical to fossil diesel, so it is compatible with all diesel engines at any blend ratio — from small additions to 100% HVO (HVO100). No engine modifications are required, and it does not void manufacturer warranties. This is a key advantage over FAME biodiesel, which is limited to B7 (7%) in most modern engines. HVO also has superior cold-weather performance and oxidation stability compared to both fossil diesel and FAME blends.: Yes. HVO is a paraffinic hydrocarbon chemically nearly identical to fossil diesel, so it is compatible with all diesel engines at any blend ratio — from small additions to 100% HVO (HVO100). No engine modifications are required, and it does not void manufacturer warranties. This is a key advantage over FAME biodiesel, which is limited to B7 (7%) in most modern engines. HVO also has superior cold-weather performance and oxidation stability compared to both fossil diesel and FAME blends.
How much more expensive is HVO than regular diesel? HVO100 typically costs 10-25 cents per litre more than fossil diesel at UK and European forecourts. The premium reflects higher feedstock costs (waste cooking oil, animal fats) and limited production capacity. For fleet operators buying in bulk, the premium can narrow to 5-15 cents/litre. The premium has been shrinking as Neste, TotalEnergies, and ENI expand HVO production capacity. For many fleets, the carbon reduction benefit (80-90% lifecycle CO2 saving from waste-based HVO) justifies the cost premium, especially where carbon reporting is required.: HVO100 typically costs 10-25 cents per litre more than fossil diesel at UK and European forecourts. The premium reflects higher feedstock costs (waste cooking oil, animal fats) and limited production capacity. For fleet operators buying in bulk, the premium can narrow to 5-15 cents/litre. The premium has been shrinking as Neste, TotalEnergies, and ENI expand HVO production capacity. For many fleets, the carbon reduction benefit (80-90% lifecycle CO2 saving from waste-based HVO) justifies the cost premium, especially where carbon reporting is required.