In recent years, the drive toward net-zero emissions has shifted from a future ambition to an immediate necessity. As the UK accelerates its climate commitments, one clean energy solution has emerged at the forefront of practical decarbonisation: Hydrotreated Vegetable Oil (HVO) fuel. While interest in HVO is growing across the UK, much can be learned from European nations where adoption is further along — offering valuable insights on policy, infrastructure, incentives, and industry collaboration.

In this article, we explore what makes HVO such a promising alternative to traditional diesel, and how the UK can benefit from European experiences to accelerate its adoption effectively and efficiently.

1. What is HVO Fuel and Why It Matters

Hydrotreated Vegetable Oil, commonly called HVO fuel, is a second-generation biofuel produced from renewable raw materials such as waste cooking oil, animal fats, and other sustainable feedstocks. Through a hydrogenation process, these feedstocks are transformed into a high-quality diesel substitute that:

  • Has significantly lower greenhouse gas emissions compared with fossil diesel.

  • Is fully compatible with existing diesel engines — often requiring no modifications.

  • Reduces harmful particulate emissions.

  • Offers a drop-in alternative that blends seamlessly into existing fuel supply chains.

For an economy like the UK’s — with its heavy reliance on road freight, public transport fleets, and agriculture machinery — HVO offers an immediate path toward emissions reduction without waiting for widespread electrification or hydrogen infrastructure.

2. European Leadership in HVO Adoption

Across Europe, countries such as Sweden, the Netherlands, Norway, and France have already taken bold steps to expand the use of HVO through strong policy frameworks, incentives, and industry cooperation.

a. Policy and Regulation as Drivers

European nations have established clear regulatory targets and mandates for renewable fuels, including HVO. These frameworks often:

  • Set minimum percentage mandates for renewable fuel blending.

  • Offer tax breaks or exemptions for low-carbon fuels.

  • Penalise high carbon intensity fuels through carbon pricing.

For example, Scandinavian countries have leveraged ambitious carbon pricing and renewable energy targets, making HVO not just an environmental choice, but an economically sensible one too.

b. Public Sector Leadership

Governments across Europe have encouraged public transport operators and municipal fleets to switch to HVO first. Large-scale deployment in buses, refuse trucks, and government vehicles demonstrates confidence in HVO while creating early demand that stabilises the market.

This public sector leadership has two benefits:

  • Demonstrates feasibility at large scale.

  • Encourages private sector companies to adopt similar strategies.

3. Lessons for the UK: What Works and Why

The UK has set ambitious climate targets, including achieving net-zero by 2050 and reducing transport emissions significantly in the near term. But to reach these goals, the UK must look beyond ambition to delivery and implementation — and in doing so, can learn valuable lessons from Europe.

1. Establish Clear and Stable Policy Signals

One of the biggest reasons European countries are ahead in HVO adoption is policy clarity.

The UK government has previously signalled support for low-carbon fuels, but long-term certainty and stable frameworks are essential to unlock investment. European experiences show that when businesses can predict regulatory direction for 5–10 years, they’re far more likely to invest in HVO supply, distribution, and usage.

UK Action Point:
Introduce stable mandates for renewable fuels and consistent tax incentives that make HVO cost-competitive with fossil diesel.

2. Scale Demand Through Public Sector Procurement

When the Swedish government committed to renewable fuel targets for all national fleet vehicles, they effectively created a domestic demand surge. Similar strategies in the UK — starting with public transport and municipal vehicles — will not only cut emissions but signal market confidence.

UK Action Point:
Mandate HVO usage in all government and publicly contracted fleets with clear timelines and performance targets.

3. Support Feedstock Supply Chains

Europe’s success with HVO has not just been about fuel usage — it’s also about securing sustainable feedstock supplies. Countries with strong agricultural sectors have built reliable supply chains, ensuring feedstock availability while maintaining sustainability standards.

The UK can build its own feedstock network by:

  • Encouraging sustainable waste-to-fuel initiatives.

  • Supporting local farmers and waste processors.

  • Creating quality standards that avoid negative land-use impacts.

UK Action Point:
Develop a national feedstock strategy that prioritises sustainability, food security, and local economic benefit.

4. Incentivise Early Adopters

European markets often combine tax breaks and subsidies to reduce the upfront cost of switching to HVO. Incentives bridge the cost gap between traditional diesel and renewable alternatives, especially in the early stages of market development.

UK Action Point:
Offer targeted incentives for small and medium enterprises (SMEs), transport operators, and agricultural users to adopt HVO.

4. Addressing Challenges: What the UK Must Watch For

While European adoption offers a clear roadmap, there are challenges that the UK must proactively address:

a. Cost and Market Dynamics

HVO production is currently more expensive than fossil fuels. Without appropriate incentives, this cost difference can slow uptake. The UK must balance fiscal support with market efficiencies to encourage long-term viability.

b. Infrastructure Readiness

Although HVO is compatible with existing diesel infrastructure, scaling distribution logistics — storage, quality control, and supply coordination — requires careful planning.

c. Sustainability Assurance

As HVO production grows, ensuring feedstock sustainability is critical. The UK must adopt robust certification processes to maintain environmental integrity while avoiding negative impacts on land use or food supply.

5. The Road Ahead: A Strategic Vision

HVO fuel adoption presents the UK with a practical, scalable pathway to decarbonise heavy transport, logistics, and diesel-dependent sectors now — not years in the future. Instead of waiting for new technologies, the UK can leverage existing engines and infrastructure while cutting emissions immediately.

By learning from European successes — particularly strong policy frameworks, public sector leadership, feedstock planning, and smart incentives — the UK can create a thriving domestic renewable fuel ecosystem that supports climate goals, economic growth, and energy resilience.

In an era where climate urgency meets technological readiness, HVO fuel isn’t just a transitional energy solution — it’s a strategic opportunity for the UK to lead in sustainable transport and energy innovation.