Making the switch: How HVO fuel is helping hauliers reduce emissions from HGVs

Why hauliers are switching to HVO for immediate carbon cuts

Heavy goods vehicles account for more than a quarter of UK road transport emissions. For hauliers facing pressure to cut carbon now, Hydrotreated Vegetable Oil offers a solution that works today. HVO drops straight into existing diesel engines without modification. In return, it can deliver carbon reductions of up to 90% compared to fossil diesel.

This matters because the transition to electric HGVs remains years away for most fleets. Charging infrastructure is patchy. Vehicle availability is limited. Capital costs are high. Meanwhile, customers want lower emissions on their freight movements right now. Tenders increasingly demand carbon reporting. Supply chain scrutiny is tightening.

HVO provides a bridge. It uses the trucks you already own. It requires no engine changes. You can fill up at existing fuel points. Consequently, fleets can start cutting emissions this month rather than waiting for electric replacements that may not arrive until the end of the decade.

What HVO fuel is and how it cuts emissions

Hydrotreated Vegetable Oil is a second-generation biofuel. Producers make it by hydrotreating waste materials such as used cooking oil, animal fats, and other residues. The process is certified under sustainability schemes including the International Sustainability and Carbon Certification system and the Renewable Fuels Assurance Scheme.

The carbon in HVO comes from plants. Those plants absorbed CO₂ from the atmosphere as they grew. When the fuel burns, it releases that carbon back into a short cycle. Fossil diesel, by contrast, releases carbon that has been locked underground for millions of years. This is why HVO delivers such dramatic reductions in net carbon dioxide.

Lifecycle emissions fall by 80% to 90% for waste-based HVO compared to conventional diesel. Rapeseed-based versions achieve around 25%. Real-world cargo trials have confirmed average reductions of 83% across mixed operations. Additionally, HVO cuts particulate matter by 40% to 80% and nitrogen oxides by up to 8%. It contains no sulphur and eliminates polycyclic aromatic hydrocarbons entirely.

The fuel also burns cleaner than standard diesel. HVO has a cetane number between 70 and 100, compared to diesel’s 40 to 55. Higher cetane means better combustion efficiency. Engines run more smoothly. Power output improves. Over time, this can extend engine life and reduce maintenance costs.

How major logistics firms are using HVO in their fleets

Several large operators have already made the switch. Courier Logistics launched its CarbonLITE service by converting 25% of its fleet to HVO. The company has installed onsite bunkering and plans to reach 100% HVO usage by 2030. This allows customers to specify lower-carbon deliveries without changing their shipping patterns.

DHL offers HVO through its GoGreen Plus program. Customers who select this service see Scope 3 emissions from European road freight drop by around 70%. The fuel is allocated through a book-and-claim model, which means not every specific vehicle uses HVO, but the total volume purchased matches the customer’s shipments. DHL has expanded this option to its Economy Select service in response to demand.

Kuehne+Nagel runs HVO on selected European truck routes. The company reports carbon dioxide equivalent reductions of up to 90% on those lanes. Similarly, Volvo Trucks has positioned HVO as the fastest route to decarbonisation for hauliers who cannot yet transition to electric vehicles. Mercedes-AMG F1 trialled HVO in 2022 to validate the emissions claims. Rolls-Royce has approved it for use in mtu generator sets.

Fuel card providers are also making HVO more accessible. Eurowag promotes its Go+ card as a way for fleets to access HVO at participating stations across Europe. This removes the need for hauliers to negotiate individual supply contracts or build their own storage infrastructure.

Carbon savings from HVO in real-world operations

A superyacht running on HVO for 1,500 hours at 300 litres per hour saved approximately 964,300 kilograms of CO₂. That represents an 80% reduction compared to fossil diesel. The saving is equivalent to taking 723 average EU cars off the road for a year. The same logic applies to HGVs, though duty cycles vary.

For a typical articulated lorry covering 100,000 kilometres annually, switching to waste-based HVO could cut net emissions by around 75 tonnes of CO₂ per vehicle per year. Multiply that across a fleet of 50 trucks and the annual saving exceeds 3,750 tonnes. That is significant for any business reporting carbon under PPN 06/21 or working towards science-based targets.

The fuel works in all existing diesel engines. Therefore, hauliers avoid the capital expenditure associated with buying new vehicles. There is no need to retrain drivers or reconfigure depots. Fuelling times remain the same. Range is unaffected. Operational disruption is minimal.

However, costs are higher. HVO currently trades at two to three times the price of fossil diesel. This premium reflects feedstock scarcity and production costs. For some operators, the carbon saving justifies the expense, particularly when customers are willing to pay a surcharge for lower-emission transport. For others, the price gap remains a barrier to full fleet conversion.

Commercial and compliance drivers behind HVO adoption

UK businesses face mounting pressure to reduce transport emissions. Public sector suppliers must demonstrate strong carbon reduction plans to qualify for major contracts. Our net-zero program for carbon reporting compliance supports firms navigating PPN 06/21 requirements, which explicitly cover supply chain emissions from freight.

Corporate customers are also tightening their Scope 3 reporting. Retailers, manufacturers, and distributors now ask hauliers for granular emissions data on specific shipments. Consequently, the ability to offer a lower-carbon freight option can determine whether you win or lose business. HVO provides an immediate answer that requires no waiting for new technology to mature.

Air quality regulations add another layer of pressure. Clean Air Zones in cities such as Birmingham, Bristol, and Portsmouth charge older, more polluting vehicles. While HVO does not eliminate nitrogen oxides entirely, the 8% reduction helps vehicles perform better against emission standards. Particulate matter cuts of up to 80% improve local air quality, which matters for urban deliveries.

Insurance and financing may also favour lower-emission fleets. Some lenders offer preferential rates for businesses with credible decarbonisation plans. Insurers are beginning to assess climate risk in their underwriting. Demonstrating tangible emissions cuts through fuel switching can strengthen your position in both areas.

Feedstock limits and long-term sustainability questions

HVO relies on waste oils and fats. Global supply of these feedstocks is finite. As more sectors compete for the same material, availability tightens and prices rise. The aviation industry is also targeting sustainable aviation fuel, much of which uses similar feedstocks. This creates competition that could constrain supply for road transport.

Production capacity is expanding, but not fast enough to meet potential demand if all HGVs switched tomorrow. Consequently, HVO is best understood as a transitional fuel rather than a permanent replacement for diesel. It buys time while electric vehicle infrastructure develops and battery technology improves for heavy goods applications.

Certification schemes such as ISCC and RFAS provide assurance that feedstocks meet sustainability criteria. Nevertheless, scrutiny continues over land use, food security, and the carbon intensity of different feedstock sources. Waste-based HVO performs best on lifecycle emissions. Plant-based alternatives deliver smaller savings and raise questions about agricultural impact.

For hauliers, this means HVO is unlikely to be the final answer. However, it is the most effective tool available right now for fleets that cannot yet transition to electric or hydrogen. It allows you to cut emissions substantially while continuing to use proven, reliable vehicles.

Key facts about HVO for HGV operators

• HVO can reduce well-to-wheel carbon dioxide emissions by up to 90% compared to fossil diesel, depending on feedstock.
• The fuel works as a direct drop-in replacement for diesel in all existing HGV engines without modification.
• Particulate matter emissions fall by 40% to 80%, and nitrogen oxides drop by up to 8% when using HVO.
• Major logistics firms including DHL, Kuehne+Nagel, and Courier Logistics have already integrated HVO into their operations.
• HVO currently costs two to three times more than conventional diesel, though prices vary by supplier and region.
• The fuel is certified under sustainability schemes including ISCC and RFAS to ensure feedstock traceability.
• Supply is limited by the availability of waste oils and fats, making HVO a transitional solution rather than a long-term replacement.

What hauliers should consider before switching to HVO

Start by calculating your current fleet emissions. You need a baseline to measure the benefit of switching fuels. Therefore, gather fuel consumption data for the past 12 months and apply standard emission factors for diesel. This gives you a clear picture of where you stand.

Next, identify which routes or customers would value lower-carbon transport. Some contracts may already include carbon reduction clauses or offer price premiums for sustainable delivery options. Targeting HVO at these high-value segments allows you to recover the fuel cost premium while demonstrating commercial commitment to decarbonisation.

Check fuel availability in your operating area. Not all suppliers stock HVO yet, though coverage is improving. If you run dedicated routes, you may be able to arrange supply at specific depots. For mixed operations, fuel cards like Eurowag’s Go+ can provide access to HVO at participating stations across the UK and Europe.

Consider the financial impact. If HVO costs £1.80 per litre and diesel costs £0.60, a truck using 30,000 litres per year will see fuel costs rise by £36,000 annually. Can you pass that cost to customers? Can you offset it through efficiency gains or premium pricing? These questions determine whether HVO makes commercial sense for your business.

Review your carbon reporting obligations. Firms supplying central government must meet PPN 06/21 requirements, which include demonstrating credible carbon reduction plans. Our ESG compliance and carbon reporting services help hauliers integrate HVO into their broader net-zero strategies and communicate the impact to customers and regulators.

Finally, plan for the long term. HVO is not the end of the road. Electric HGVs will eventually become viable for more applications. Hydrogen may play a role in long-haul operations. Using HVO now should fit within a wider strategy that includes vehicle replacement cycles, driver training, and infrastructure investment.

Where to find further information on HVO and fleet decarbonisation

The Department for Energy Security and Net Zero publishes guidance on renewable fuels and transport decarbonisation. This includes information on policy support for advanced biofuels and sustainability certification requirements.

The Society of Motor Manufacturers and Traders has produced research on HVO adoption in the haulage sector. Their work covers technical compatibility, emissions performance, and industry case studies from early adopters.

Volvo Trucks offers detailed technical guidance on using HVO in its vehicles. The manufacturer’s position is that HVO provides the fastest route to emissions cuts for operators unable to switch to electric trucks immediately. You can find this information on the Volvo Trucks UK website.

For training on carbon reporting and supply chain emissions, the SBS Academy provides practical support for SMEs navigating Scope 3 calculations and customer requirements. This includes how to measure and communicate the carbon benefit of fuel switching in tender responses and contract negotiations.