A Haulier's Guide to HVO

My client or customer wants me to use HVO for their logistics

Prema has helped many hauliers to switch over some or all their fuel to HVO on behalf of customers.  We work with major companies, like pallet pooling, food and beverage manufacturers, and retail, who want to cut carbon emissions from their downstream partners (Scope 3 emissions) and need help to do so.  We are here to help and to answer your questions. 

Will HVO harm my engines?

n short, no.  HVO is a drop-in replacement for diesel.  This means that it does the same job as diesel and is physically and chemically very similar to diesel.  It meets the EN15940 specification as a “parafinnic diesel fuel”, like GTL.  It also meets the EN590 diesel specification in all areas apart from density – it is a little lighter and less dense than diesel. 

In practice, after millions of litres of HVO and millions of miles fuelled by it, not a single customer of ours has ever reported a problem.  In fact, many are impressed by the fact that HVO not only seems to be slightly more efficient than diesel but they are needing to use less AdBlue and requiring fewer filter changes.  This is because HVO does not contain any biodiesel/FAME, which is added to road diesel as the B7 component and can cause problems in cold weather, filter and line blockages and is prone to spoiling. 

HVO does not attract water and will not support microbial growth – so diesel bug will not affect your correctly stored HVO. 

Always check with your engine manufacturer that your make and model is compatible with HVO.  If the answer is yes, you are good to go! 

Will HVO affect my warranty?

Only your manufacturer can confirm this.  We recommend asking directly  

“Is my engine compatible with fuel meeting the EN15940 specification?”  

This question avoids any confusion about what HVO is.  Most major manufacturers now approve of HVO in their engines and many recommend it as a first fill fuel. 

How do I buy HVO?

There is a growing network of HGV refuelling stations around the UK now offering HVO to customers.  While convenient if you are sited near one, they are not yet common enough to provide full coverage and, due to different ownerships, you may struggle to arrange fuel cards which apply to all of the sites you will need to visit. 

By far the most economical way to buy HVO is to set up a fuel storage tank on your site and have your fuel delivered. 

Prema can help you to choose and buy a suitable tank.  We can then arrange to keep you topped up with HVO, with remote monitoring of your fuel levels if required. 

HVO is expensive, how do I pay for the additional cost?

In most cases, if your customer or client is asking you to use HVO on their behalf, they are aware of the cost differential between HVO and diesel and will be willing to contribute to or fully cover the extra cost of switching. 

Some companies will contribute to the cost of installing a tank so that you can use HVO on their behalf.  

Do I need to ringfence my vehicles with HVO in the tank just for one customer?

In most cases this is not necessary.  Not only is it a logistical headache and potentially going to impact your bottom line, but it also tends to be a less economical way to use HVO.  If your vehicles are having to drive out of their way to fill up at base, sitting idle waiting for HVO work or unable to complete longer journeys solely on HVO, your client will not be getting best value. 

Most companies looking to reduce their emissions from transport will understand this and should be supportive of you using HVO where it is convenient in your fleet and your business.  As long as you agree beforehand that you will ensure to replace the volume of diesel used on your client’s work with the equivalent volume of HVO, and provide proof of carbon savings direct to them, this system should work. 

Once in place, you can relax.  Fill your vehicles with HVO when they are at base and needing fuel.  Top up with diesel out on the road if required.  The fuels are fully miscible so this will not lead to problems.  Keep careful records of your HVO purchases and the fuel allocated to your client’s work to make sure you are using the correct amount.  

Prema can help you to calculate the amount of HVO required to fulfil your contracts.  We also assist with clear invoicing and carbon accounting to make sure you can easily ensure you are paid for the difference in price, and that your client is happy with the proof provided of HVO used and carbon saved on their behalf. 

How do I prove to the client how much carbon they have saved?

As a member of RFAS, Prema is obliged to provide quarterly, independently audited certificates to our HVO customers.  These show clearly how much fuel has been supplied, gives details about its origin and feedstock and sets out the actual carbon savings attached to the fuel you purchased.  These can be set up in your client’s name so that they can be confident in your figures and to ensure there are no concerns about double counting (using the same certificate for more than one client). 
 
It can be difficult to source accurate figures and proof of carbon savings when buying HVO from an HGV refuelling station, so most companies are happier when their hauliers buy their own fuel from a supplier who is an RFAS member.   

I can’t afford to install a tank. What are my options?

Although most companies prefer to pay for a tank upfront, it is possible to lease one or even to request a “lease to buy” scheme whereby Prema will put in a tank with no upfront cost and charge a small uplift for a contracted volume of HVO until the tank is paid for.   

In many cases you will be able to pass on some or all of this excess cost to the customer requesting HVO, either as a capital expense or as a small additional margin on your fuel charges. 

With HVO at the pump costing anywhere up to 40ppl more than HVO delivered to your site, the tank will soon pay for itself. 

 

If you have customers requesting HVO, talk to our friendly team today for advice on how you can make the switch as simply and painlessly as possible.