As businesses across the UK face growing pressure to reduce their carbon footprint and hit net-zero targets, finding sustainable alternatives to traditional fossil fuels has become a top priority.

One cleaner alternative gaining rapid traction in the transport and logistics sectors is HVO fuel. In fact, according to official Department for Transport RTFO statistics, the commercial supply of HVO in the UK has grown from 38 million litres in 2020 to 784 million litres, now accounting for 21% of all renewable fuel supplied nationwide.

But what exactly is it, how is it made, and can it integrate seamlessly with your current fleet operations? In this ultimate guide, we break down everything you need to know about Hydrotreated Vegetable Oil and how it can help power your business into a greener future.

What is HVO fuel?

HVO stands for Hydrotreated Vegetable Oil. It is a premium, high-quality, fossil-free diesel alternative.

Unlike first-generation biodiesels, HVO is a synthetic, paraffinic product. Because it shares an almost identical chemical structure to regular fossil diesel, it is classified as a "drop-in" fuel. This means it can be used directly in existing diesel engines without requiring any costly modifications to your vehicles or fuel storage tanks.

What is HVO fuel made from?

Despite what the name might suggest, modern HVO is rarely made from fresh vegetable oil. Instead, it is predominantly manufactured from sustainable, renewable waste materials and residues. Common feedstocks include:

• Used cooking oil (UCO)
• Animal fats (tallow)
• Waste crops and agricultural residues
• Tall oil (a by-product of wood pulp manufacture)

Because it utilises waste products that would otherwise go to landfill, it supports a circular economy and avoids competing with agricultural land used for food production.

How is HVO fuel made?

The transformation of raw waste products into a high-performance fuel is a highly advanced technical process. HVO feedstock undergoes multiple chemical processes, primarily hydrogenation and hydrocracking.

1. What is hydrogenation? Hydrogenation is the process of combining hydrogen (H2) with additional compounds. In the case of hydrotreated vegetable oil, this is done with fatty acid feedstock, saturating it so that the hydrogen can bond with and remove oxygen from the feedstock as water (H2O). This results in the separation of propane and water, priming the compounds for further processing.
2. What is hydrocracking? Hydrocracking refers to the catalysed cracking of hydrocarbon chains into smaller components. This process can be adjusted depending on the desired fuel outcome. It will result in several paraffinic hydrocarbon compounds, each with a lower average number of carbon atoms than the original hydrocarbon chains. This allows manufacturers to precisely adjust the fuel structure to achieve the required winter and summer specifications.

Is HVO fuel sustainable?

Yes, HVO is one of the most sustainable fuels available on the commercial market today.

Official data reported to the UK Parliament confirms that across its full lifecycle, HVO consistently achieves an average 89% to 90% net greenhouse gas reduction compared to standard fossil diesel when sourced from verified waste feedstocks.

Additionally, because of its high purity and clean burn, HVO significantly improves local air quality by reducing harmful tailpipe emissions, including:

• Up to 30% lower Nitrogen Oxide (NOx) emissions
• Up to 80% lower Particulate Matter (PM/soot) emissions

Is HVO a biodiesel?

While both are derived from renewable biomass, HVO is not the same as standard biodiesel (known as FAME – Fatty Acid Methyl Ester).

FAME biodiesel is produced via transesterification, leaving oxygen in the fuel, which makes it prone to absorbing water, growing "fuel bug", and degrading over time. HVO, however, uses hydrogen to strip out the oxygen during processing. This makes HVO highly stable, resistant to bacterial growth, and gives it an excellent shelf life of up to ten years, making it far superior for long-term storage and winter performance. To maintain complete transparency, fleet managers can verify the exact carbon savings of their batches via the Zemo Partnership Renewable Fuels Assurance Scheme.

Is HVO better for your engine?

Because HVO undergoes a rigorous hydrotreatment process, it is free of common impurities such as sulphur, oxygen, and aromatics. It also boasts a significantly higher cetane number (around 70-90) than standard fossil diesel (typically 51).

This means it ignites more efficiently, delivers better cold-start performance in winter temperatures, ensures a cleaner burn, and reduces soot buildup in engines and Diesel Particulate Filters (DPFs).

Can HVO be mixed with diesel and used in cars?

Because it is a direct drop-in replacement, HVO can be mixed freely with standard fossil diesel in the same tank without any issues. If your drivers cannot access an HVO pump while out on the road, they can top up with regular diesel and vice versa.

In terms of compatibility, HVO is fully approved for use in the vast majority of modern commercial heavy goods vehicles (HGVs) and vans. It can also be used in passenger cars, provided the vehicle manufacturer approves the use of fuels meeting the EN 15940 specification (often indicated by an 'XTL' label inside the fuel cap).

Performance comparison at a glance

Before making the switch, here is how premium HVO compares directly to traditional forecourt diesel across key technical metrics:

Performance Metric	Standard UK Fossil Diesel	Premium Hydrotreated Vegetable Oil (HVO)
Net Greenhouse Gas Impact	Baseline (100% Emissions)	Up to 90% Reduction
Typical Storage Shelf Life	~12 Months (Risk of "fuel bug")	Up to 10 Years (0% FAME content)
Average Cetane Number	~51	70 to 90 (More efficient combustion)
Tailpipe Particulate Matter	Baseline	Up to 80% Reduction

What does our expert say?

" HVO offers businesses a rapid, scalable, 90% reduction in carbon emissions with zero modifications to existing vehicles. By integrating HVO into our fuel card network, we have ensured that transitioning to a cleaner fuel source requires no extra administrative burden. Drivers simply refuel at the pump, while fleet managers track their reduction in carbon emissions, via their ZEMO declarations.”

James Higgins, Head of Network at Radius

Ready to transition your fleet to HVO?

Adopting cleaner fuels does not have to complicate your fleet administration. With the right fuel card network, your business can easily access, track, and manage your alternative fuel spend alongside your standard diesel costs on a single invoice.

Explore how our HVO fuel cards can help streamline your business's journey toward net-zero targets today.