How Much Does HVO Fuel Cost Compared to Fossil Diesel?

HVO stands for hydrotreated vegetable oil and is an eco-friendly biofuel that uses hydrogen as a catalyst to create a renewable energy source from, as the name suggests, vegetable oils. Because HVO is created using hydrogen instead of methanol as a catalyst, it is classed as a cleaner alternative to regular biodiesel. It also has a longer shelf life. But perhaps not surprisingly, these advantages impact the typical HVO fuel cost. This blog will explore the important information you need to know about HVO fuel, including its uses, advantages and disadvantages, cost, and more.

HVO Fuel Costs in the UK

The typical HVO fuel cost in the UK varies, depending on the UK distributor you choose for your supplies. The best thing to do in this respect is to ask the HVO distributor(s) of your choice for an accurate price quote for your own requirements. Having said that, you should expect HVO fuel generally to cost around 10 to 15% more on average than the price of traditional diesel. But despite the larger investment, you may find that the benefits HVO fuel offers far outweigh the cost.

HVO can be used as a substitute for regular fuel or diesel in a wide range of existing machines and equipment, including generators, tractors, farming equipment, and even cars and vans. There is usually no need to make any modifications to your vehicle or machinery – we discuss this in further detail below.

Why Make the Switch?

1. No necessary adaptations to your existing equipment

HVO is a drop-in fuel, meaning it can be used in your existing equipment or vehicle without the need to make any modifications. This means you can make the switch to HVO fuel if you choose without any extra costs for adaptations in preparation. Moreover, HVO fuel can be freely mixed in with traditional diesel at any percentage without issue.

2. Reduced emissions

HVO fuel contains lower levels of toxic materials and chemicals such as NOx and CO2 and has lower PM emissions as well. In fact, it’s estimated that high-quality HVO fuels can reduce your CO2 emissions by as much as 90% without affecting the performance of your machinery. As well as the benefits of reducing toxic gas emissions for ethical reasons, switching to HVO fuel will also allow you to comply with UK regulations on emissions.

3. Eco-friendly

Because HVO fuel is created from renewable materials, such as residue fat fractions or used cooking oil, it causes less damage to the environment than regular fossil fuel or other fuel types made or derived from non-renewable materials. If your company or business is keen to adopt an eco-friendly stance, switching to HVO fuel is a good move.

4. Longer lifespan compared to other biofuels

As noted, the way HVO is created means it has a far longer lifespan than other biofuels. This means you can stockpile HVO in advance without the fear of any deterioration in the quality or performance of the fuel. This can reduce the number of occasions on which you purchase HVO, potentially reducing expenditure on deliveries.

Are There Any Disadvantages to Switching?

While there are considerable benefits to making the switch, it’s important in the interests of balance to cite possible disadvantages. However, it’s worth noting that these may well diminish over time as the landscape develops.

1. Can be hard to buy in some UK areas

The supply chain for HVO fuel in the UK is still in its infancy. This means that HVO fuel is not always as readily available as other more established fuel types like diesel, especially in rural areas. However, if you do find a good supplier, HVO’s long shelf life would enable you to order in bulk if required.

2. More expensive

You may not need to pay out for modifications to existing equipment and vehicles to use HVO fuel, but at the moment, it will cost more overall to purchase supplies. However, for many companies, the benefits of HVO fuel could outweigh its higher costs. While diesel is currently cheaper, it won’t help you comply with UK regulations on toxic gas emissions. And it seems likely that with developments in the market, prices could well drop in future.

3. Inconsistency

HVO fuels can vary in quality between suppliers, especially when manufactured from palm oil and other similar materials. This could have a negative effect on the performance of your machinery, which in turn could reduce the productivity of your business as a whole. To negate this disadvantage, it’s important to source a supplier that offers HVO fuel with consistent quality and purchase exclusively from them.

Prema is one of the best and most consistent HVO fuel suppliers in the UK in terms of both quality and customer service, providing the best HVO fuel to a number of large organisations. Our HVO fuel is guaranteed to reduce your emissions while providing reliable performance, allowing you to reach your business objectives. Alongside HVO fuel, we also supply a variety of other high-quality fuels, including heating oil, GTL, kerosene, marine fuels, and so on. You can click on the corresponding tabs on this website to view the full range of products that we offer.

if you have any questions about our products and services, you can complete the online form on this website to connect with our technical team. If you are interested in signing up to a contract with us, you can book a meeting with our technical sales team.

HVO Fuel: What You Need to Know

Political pressure is mounting on the fuel sector to develop low-carbon liquid alternatives to traditional diesel, gas oil, and kerosene. Decarbonisation of the transportation industry both on and off the road and the home heating oil sector will have a significant influence when it comes to addressing climate change and decreasing greenhouse gas emissions.

HVO provides an instant and fungible alternative to fossil fuels without requiring any vehicle modifications or adjustments to supply infrastructure.

The current downside to this is availability. While the world has become aware of the benefits of HVO and demand is growing, supply is currently limited and does not meet that demand. New manufacturing units are not expected to be operational for some time. As a result, HVO must be transported over large distances.

As a result, costs will remain higher than conventional diesel, gas oil, and kerosene in the immediate future, with a ballpark value of around 20 pence per litre.

Biofuels are expected to play a role, albeit relatively minor at present, in meeting the world’s long-term energy needs. HVO is a decent short-term option. However, the current lack of instant availability makes the HVO price per ton impractical for many.

However, when used in a well-maintained engine, well-sourced normal gasoline, stored properly, and dosed with additives that keep the injectors clean and optimise the combustion process, HVOs can cut carbon emissions and fuel consumption by up to 4%.

Biofuel Benefits Go Beyond Environment

Climate change and energy security goals have produced a regulatory environment that will quickly increase the biofuels sector despite marginal economics. Ethanol and biodiesel are the two types of biofuel currently available.

Fuel requirements are being tightened in both emerging and developed countries. Furthermore, governments are establishing explicit objectives for the usage of biofuels. These are becoming increasingly mandatory. Biofuel generation is also promoted and subsidised in developing economies. Biofuel is cost-competitive compared to imported or locally processed petroleum fuels in tropical regions. On the other hand, other nations rely heavily on subsidies and tax breaks.

Biofuels pit energy and agricultural markets against one another. While this may help keep biofuel production costs high, policy trade-offs between agriculture subsidies and biofuel incentives may be necessary.

Necessarily at present, HVO fuel costs affect how the world sees and benefits from this renewable energy source. However, at HVO Fuel UK, we can help you achieve your carbon reduction goals environmentally in a financially sustainable way. Visit our homepage to learn more.