VAROPreem launches Preem Redefine HVO100 for greener diesel in Norway

Nordic Swan certified renewable diesel now available in Norway

VAROPreem launched Preem Redefine HVO100 in Norway on 24 February 2026. The renewable diesel is the world’s first to carry Nordic Swan Ecolabel certification. It cuts fossil carbon dioxide emissions by at least 90% compared to conventional diesel.

The fuel arrives as Norway manages a significant diesel vehicle fleet. Around 1.7 million diesel vehicles remain on Norwegian roads. This includes more than 1 million passenger cars and 700,000 commercial vehicles. Electric vehicles dominate new sales. However, the existing fleet needs low-carbon solutions today.

VAROPreem is a joint venture between Switzerland’s VARO Energy and Sweden’s Preem AB. The company produces HVO100 at Preem’s Gothenburg refinery. Annual production capacity stands at approximately 300,000 cubic metres. If this volume fully replaced mandated diesel use in Sweden, it would eliminate up to 846,500 tonnes of carbon dioxide equivalents annually. That equals emissions from around 300,000 private diesel cars.

HVO100 stands for Hydrotreated Vegetable Oil at 100% concentration. The fuel is chemically identical to fossil diesel. Most existing diesel engines can use it without modification. Drivers should check for an ‘XTL’ marking on their fuel cap. Manufacturer approval is recommended before switching.

Production uses waste materials and meets RED II standards

Preem produces the fuel from residual raw materials. These include by-products from forest and food industries. The company excludes palm oil, palm residues and soybean oil from its feedstock. Therefore, the fuel avoids crops linked to deforestation or food security concerns.

Production complies with the EU Renewable Energy Directive Article 31. This regulation sets calculation methods for greenhouse gas emissions. Full traceability backs every batch. Nordic Swan certification requires annual documentation of emissions and responsible raw material sourcing.

Bjørn Olav Strandli is Market Manager at Nordic Swan Ecolabel. He stated that the certified renewable diesel offers an important solution for the transport sector. Consequently, the certification provides buyers with verified environmental credentials beyond standard regulatory compliance.

The fuel is adapted for Nordic climates. It maintains high cold resistance. This matters in Norwegian winters where standard biodiesel can gel. Meanwhile, HVO100 performs reliably in sub-zero temperatures without additives.

Norway launch targets commercial bulk buyers initially

VAROPreem began sales through bulk distribution channels on 24 February 2026. Commercial customers and distributors can order now. Availability at retail fuel stations remains under discussion. The company has not confirmed specific timelines for pump access.

Pricing data from 25 February 2026 shows the fuel costs 25.06 Norwegian kroner per litre. Standard diesel costs 20.78 kroner per litre at the same date. The premium reflects production costs and certification requirements. This price gap may limit retail uptake among private motorists.

Magnus Heimburg is Deputy CEO and Executive Vice President for Markets and Customer Relations at VAROPreem. He explained that Norway leads in electrification. However, the transition will take time. Renewable blend fuels play an important role in cutting emissions further. Norwegian drivers can switch from fossil to renewable fuel today without changing vehicles.

The initial focus on bulk sales suits commercial fleets. These buyers often prioritise emissions reduction for tender compliance or corporate targets. Additionally, fleet operators can absorb higher fuel costs more readily than individual drivers. Many commercial vehicles lack immediate electric alternatives, particularly in heavy transport.

Swedish market context shows emission reduction potential

Preem already markets HVO100 in Sweden under the Redefine brand. Sweden’s road transport emissions rose 18% last year. Transport accounts for one-third of Sweden’s total climate emissions. Consequently, Preem positions renewable diesel as a critical tool for reversing this trend.

Preem is Sweden’s largest fuel producer. The company has been converting its refineries from fossil to renewable production. This strategic shift responds to climate policy and market demand for lower-carbon fuels. Sweden’s regulatory environment supports renewable diesel through tax incentives and blending mandates.

The Swedish experience provides useful indicators for Norway. Commercial fleets adopted HVO100 relatively quickly. Private motorists showed slower uptake due to price sensitivity. Availability at retail stations proved essential for broader adoption. Norway may follow a similar pattern as supply expands.

Nordic Swan certification sets Preem Redefine apart from competing HVO products. Other producers offer similar emission reductions. However, the ecolabel provides third-party verification of sustainability claims. This matters increasingly in public procurement and corporate supply chains.

HVO100 works in existing diesel vehicles without modifications

Most modern diesel engines accept HVO100 without technical changes. The fuel meets EN 15940 specification for paraffinic diesel. Vehicle manufacturers increasingly approve HVO use in their models. Nevertheless, drivers should verify compatibility before switching.

The ‘XTL’ marking on fuel caps indicates compatibility with synthetic and renewable diesels. Many vehicles produced after 2010 carry this designation. Older vehicles may also be compatible. However, checking manufacturer guidance avoids potential warranty issues.

HVO100 previously targeted heavy transport applications. Trucks, buses and construction equipment gained approval first. Extending compatibility to passenger cars broadens the potential market significantly. This opens emission reduction opportunities for private motorists and small businesses.

The fuel delivers performance equivalent to fossil diesel. Power output remains unchanged. Fuel consumption is comparable. Therefore, drivers experience no practical difference at the wheel. This removes adoption barriers common with earlier biofuel generations.

Essential information about Preem Redefine HVO100

• VAROPreem launched the world’s first Nordic Swan certified HVO100 in Norway on 24 February 2026.
• The renewable diesel reduces fossil carbon dioxide emissions by at least 90% compared to conventional diesel.
• Production uses residual materials from forest and food industries, excluding palm oil and soybean oil.
• Around 1.7 million diesel vehicles in Norway can potentially use the fuel, including over 1 million passenger cars.
• Initial sales focus on bulk supply to commercial customers, with retail station availability under discussion.
• Pricing as of 25 February 2026 shows HVO100 costs 25.06 Norwegian kroner per litre versus 20.78 for standard diesel.
• VAROPreem’s annual production capacity of 300,000 cubic metres could cut up to 846,500 tonnes of carbon dioxide equivalents if fully replacing mandated diesel.

Commercial fleets face compliance pressure and tender requirements

UK businesses operating in Norway should note several factors. Public procurement increasingly includes carbon reduction criteria. Consequently, fleet emissions affect tender competitiveness. Using verified low-carbon fuel provides documented evidence of environmental performance.

Many UK companies with Nordic operations manage mixed fleets. Electric vehicles suit urban delivery. However, long-distance haulage and rural operations still depend on diesel. HVO100 offers immediate emission cuts without fleet replacement costs. This matters when capital budgets are constrained.

Supply chain transparency grows in importance. Customers and regulators demand proof of sustainability claims. Nordic Swan certification provides independent verification. Therefore, businesses can report Scope 1 emissions reductions with confidence. This supports carbon reporting compliance under PPN 06/21 and similar frameworks.

The price premium requires careful evaluation. Businesses must weigh fuel costs against tender scoring, reputational benefits and regulatory risk. In some cases, sustainable fuel use differentiates bids decisively. In others, cost constraints favour conventional diesel until mandates force change.

VAROPreem’s production capacity limits current supply. Businesses seeking bulk orders should engage distributors early. Meanwhile, retail availability remains uncertain. Fleet managers cannot yet rely on widespread pump access for smaller vehicles. Planning should account for these supply constraints.

Regulatory landscape supports renewable diesel adoption

The EU Renewable Energy Directive sets binding targets for transport emissions. Member states must increase renewable energy share in transport to 29% by 2030. Norway, though not an EU member, aligns climate policy closely with European standards. Consequently, regulatory pressure for renewable fuels will intensify.

Renewable diesel qualifies under multiple compliance pathways. It counts toward blending mandates. It supports corporate carbon budgets. Additionally, some jurisdictions offer tax advantages or exemptions for certified renewable fuels. Businesses should investigate applicable incentives in their operating regions.

Sustainability criteria tighten continuously. The RED II regulation excludes high-risk feedstocks. Certification schemes must verify supply chain integrity. VAROPreem’s exclusion of palm and soy addresses these concerns proactively. However, ongoing monitoring ensures continued compliance as standards evolve.

Vehicle emission standards drive market development. Euro 7 regulations will further restrict pollutants. Renewable diesel produces fewer particulates than fossil alternatives. Therefore, it helps fleet operators meet air quality requirements alongside carbon targets. This dual benefit strengthens the commercial case.

Energy transition requires multiple parallel solutions

Electrification dominates new vehicle sales in Norway. However, the existing diesel fleet will operate for years. Consequently, renewable diesel bridges the gap during transition. It delivers immediate emission reductions without waiting for fleet renewal cycles.

Heavy transport faces particular challenges. Battery electric trucks suit short urban routes. Long-distance haulage requires range and payload capacity that current batteries cannot match affordably. Renewable diesel provides a practical solution for these applications today. Meanwhile, hydrogen and other technologies develop.

Manufacturing and construction sectors depend on mobile diesel equipment. Excavators, generators and agricultural machinery have long service lives. Retrofitting or replacing this equipment carries substantial cost. HVO100 enables emission cuts using existing assets. This matters for businesses managing capital expenditure carefully.

Fuel infrastructure exists already. Diesel tanks, pumps and delivery systems require no modification for HVO100. This contrasts sharply with hydrogen or electric charging networks. Therefore, deployment costs remain low. Businesses can switch fuel suppliers without infrastructure investment.

Production capacity represents the primary constraint. Current supply cannot replace all diesel consumption immediately. However, capacity is expanding. As more refineries convert to renewable production, availability will improve. Early adopters secure supply while building experience with the fuel.

Feedstock sustainability remains under scrutiny

Raw material sourcing determines renewable diesel’s true environmental benefit. Preem’s use of waste and residue feedstocks avoids land-use competition. However, residue availability is finite. Scaling production globally requires diverse feedstock sources. This raises questions about long-term sustainability.

Used cooking oil represents a popular HVO feedstock. Yet supply is limited relative to diesel demand. Competition for waste oils drives prices up. Additionally, fraud cases have emerged where virgin vegetable oils are mislabelled as waste. Certification and traceability systems must prevent such abuses.

Advanced feedstocks like algae or synthetic fuels promise greater sustainability. However, commercial production remains expensive and limited. Therefore, residue-based HVO represents the most viable renewable diesel for the next decade. Continuous improvement in feedstock sustainability and supply chain verification is essential.

Indirect land-use change presents another concern. If waste oils shift from other uses, replacement materials may drive deforestation. Life cycle assessments must account for these indirect effects. Nordic Swan certification requires comprehensive evaluation. Nevertheless, ongoing research refines understanding of these complex interactions.

Cost considerations affect adoption rates

The price premium of 4.28 Norwegian kroner per litre represents approximately 20% more than fossil diesel. For a vehicle consuming 2,000 litres annually, this equals 8,560 kroner in additional cost. Small businesses and private motorists may find this prohibitive without incentives.

Commercial fleets with higher consumption face larger absolute costs. However, they also derive greater benefit from emission reductions. Corporate sustainability commitments often justify premium pricing. Additionally, some contracts include pass-through clauses for fuel costs. This reduces financial impact on operators.

Regulatory costs may shift the calculation. If carbon pricing or fuel taxes increase, the premium narrows. Some jurisdictions already tax fossil diesel more heavily than renewable alternatives. Therefore, relative pricing varies by market. Businesses should model scenarios based on expected policy changes.

Operational savings may offset fuel costs partially. HVO100 burns cleaner than fossil diesel. This can extend engine life and reduce maintenance. Particulate filter regeneration cycles decrease. These benefits accumulate over time, improving total cost of ownership. However, quantifying these savings requires long-term data.

Find detailed information on renewable diesel standards

The Nordic Swan Ecolabel website provides certification criteria for renewable fuels. This includes specific requirements for greenhouse gas documentation and raw material traceability. Businesses considering certified fuel purchases should review these standards.

The EU Renewable Energy Directive sets the regulatory framework for renewable fuels. Article 31 specifies calculation methodologies for emission reductions. Understanding these rules helps businesses evaluate different fuel options accurately.

Norway’s Ministry of Climate and Environment publishes transport emission data and policy updates. This context shows how renewable diesel fits within national climate strategy. Monitoring policy developments helps businesses anticipate future requirements.

VAROPreem’s corporate website offers technical specifications and supplier contact information. Businesses seeking bulk supply should engage directly with the company. Additionally, SBS compliance services can help interpret how renewable fuel use affects carbon reporting obligations.