Is HVO A Good Future Fuel for Heating Homes & Powering Diesel Vehicles?

We’re living through a period of major transition in the energy sector. The potentially devastating consequences of climate change are fast becoming a reality as communities around the world grapple with record global temperatures.  

We are all being urged to rethink our energy use by reducing our dependency on fossil fuels and instead embrace more sustainable, renewable energy solutions.    

There are undoubtedly challenges along the way.  The renewable energy sector is still developing and evolving, so while the transition is being pushed through at pace, we still need to ensure continuity of supply.  In practice, this means searching for solutions that are relatively easy to implement, practical and (importantly) affordable.  While climate action is an absolute imperative, equally, no one wants to push households into fuel poverty. 

Low carbon liquid fuels will play a vital role in helping us solve this problem, and one of the most exciting examples is Hydrotreated Vegetable Oil (HVO).  HVO may not be a new energy source, but it’s really only recently that it’s been widely promoted as a realistic mainstream alternative to kerosene and diesel.

What is HVO Fuel?

HVO is also known as biofuel, green diesel, and renewable diesel.  It’s a plant-based, premium-quality fuel made from fossil-free, certified and sustainable raw materials.

It has a very low carbon content (88% less carbon than kerosene) and it has potential both as a domestic heating source and as a vehicle fuel.  In fact, it could be argued that HVO represents a better choice for many off-grid properties than heat pumps (another, very popular renewable alternative) because it is compatible with oil-fired boilers with very little modification. 

Furthermore, transitioning to HVO from domestic heating oil (kerosene) doesn’t require any of the installation costs that are associated with another option which is heat pumps. HVO doesn’t require any costly upgrades to the property, such as improved insulation. Nor does it need new pipework or radiators.

This latter point is important, because it should make transitioning to low-carbon liquid fuel relatively quick and easy for most households.  

To underline the point, HVO was recently approved for HEAT applications in England and Wales (the regulations came into force on June 15, 2022 in England and apply from November 23, 2022 in Wales).  The decision means that HVO can be used as a heating fuel for any off-grid properties - including new build – in full compliance with Building Regulations.

Finally, it’s one of the greenest renewable energy solutions currently on the market.  If we compare CO2e value and primary energy factor, we can see that it is lower in both cases for HVO than either bio-mass wood pellets or when compared to the electricity needed to power a heat pump.

Source: SAP 10.2 Table 12

How is HVO Fuel used?

As well as being almost a “straight swap” for domestic heating oil (kerosene) because of its close compatibility with oil-fired boilers (after some modifications), HVO can also be used in diesel-powered vehicles – even large ones.  John Deere tractors, for example, can run on HVO, which is important because although electric vehicles are becoming ever more ubiquitous, electricity cannot match the energy density of kerosene or HVO, so isn’t always a practical option for large vehicles.   

It's also fair to say that heat pumps (which are powered by electricity) may not be an effective way to heat a large proportion of UK and Irish homes; many older properties simply aren’t well-enough insulated.

All of our domestic heating oil storage tanks as well as our FuelMaster & TruckMaster fuel tanks are HVO-compatible. 

How much does HVO Fuel Cost?

As we know, the price of fossil fuels is rocketing up, however, unfortunately HVO is still more expensive than either DERV (white diesel) or kerosene.

At the time of writing (August 2022) HVO is 20-30p per litre more expensive than diesel, and £1.20 per litre more expensive than kerosene (source: Crown Oil), which puts it outside the reach of many households.

While we anticipate that the cost of HVO will come down as demand rises, we are concerned that the current price differential will significantly slow market growth. 

Most of this additional cost is because HVO is taxed as a transport fuel, not a home heating fuel, and so there is concerted industry lobbying by OFTEC, UKIFDA, and futurefuelready to fix this anomaly. 

Ultimately, it is down to regulators, government, and the wider industry to address the affordability as well as ensure that HVO supplies can meet the expected demand.

Where can I buy HVO Fuel? 

It’s not universally available yet, but the good news is that HVO’s distribution network across GB and Ireland is slowly but steadily expanding as more and more Fuel Oil Distributors stock the fuel.

How does HVO Fuel compare to other fuels such as DERV and Kerosene?

HVO is more efficient at heating properties than kerosene and has the added advantages of being odourless and is less toxic.  HVO can be manufactured from existing waste and is meets the sustainability criteria under the International Sustainability and Carbon Certification (ISCC) system - all the raw materials are audited and checked to ensure the integrity of the end product.

It’s also been recognised by the government as having a key role to play in decarbonising the transport industry.  Why?  Well, first, it’s compliant with the requirements laid down in EN15940 and ASTM D97 5. 

Second, not only is it fully biodegradable, HVO is a very stable vehicular fuel, with a low FAME and sulphur content, so it does not deteriorate in storage over time – indeed its shelf life is typically up to 10 years. 

Third, HVO is structurally almost identical to diesel so, again, there is no need to update generators or modify vehicular engines – and it’s effective down to minus 22oC, eliminating any issues with cold starts.

And last but not least, tests have shown far fewer harmful emissions from HVO-fuelled engines, including a significant reduction in NOx and particulate matter.