Why we're Using HVO To Decarbonise Our Fleet

As we embark on the next stage in our journey to net zero, Recorra is preparing to run its fleet on Hydrotreated Vegetable Oils, known as HVOs.  

These alternative fuels have around a 90% reduction in carbon emission versus diesel and will hugely progress us towards our carbon reduction targets.1 Once we change the whole fuel supply, our scope 1 will plummet from over 1600 tonnes of CO2e (carbon dioxide equivalent) a year to under 100 tonnes, the same as going from flying from London Heathrow to LA and back 470 times down to only around 10 return flights a year. This is a no-brainer decision that also benefits our clients, whose scope 3 from our services will reduce by a similar magnitude.  

There are many questions surrounding HVO, so in this blog we are going to break down any major concerns, explain how it’s made, how exactly it achieves its carbon reduction, and why it’s becoming a hot-button issue in the industry at this moment. Always committed to transparency, we also explain some of the risks associated with HVO. 

HVO – An Explainer

So first up, let’s get you in-the-know about HVO.

This biofuel called HVO or ‘hydrotreated vegetable oil’ is made by heating waste oils or fats and blasting them with hydrogen. This process removes oxygen molecules in the fatty liquid, transforming it into a fuel similar to, and useable as, diesel.

This fuel is safe to use down to negative 30 degrees Celsius, produces very little of the harmful air pollutant NOx (nitrogen oxides), and has a ten-year shelf life. In fact, it’s so clean that it’s almost transparent – looking quite like water. Most importantly, you can get all these benefits without reducing the calorific value of the fuel, meaning that litre for litre, you get almost the same energy output from HVO as diesel.

A good way to think about HVOs is as a premium, extremely low-carbon diesel replacement.v

How does it work?

Global Warming and HVO

HVO has an impressive carbon reduction versus diesel. The key is in the ‘bio’ part of biofuel – it comes from plants or animals, not minerals.  

Diesel and petrol fuels are made from crude oil, which is the remains of ancient marine organisms like algae and zooplankton. These were transformed into mineral oil over millennia through the crushing weight and heat of the earth’s crust. When these mineral deposits are sucked out of the earth, then burnt, they release carbon dioxide into the atmosphere. It’s this absolute increase in greenhouse gas particles that is driving global warming.

In contrast, biofuels just cycle carbon dioxide through the growing seasons.  In summer, biomass crops grow, removing carbon dioxide from the atmosphere through photosynthesis. They are then harvested, the waste is processed into fuel, and when burnt they emit the same quantity of carbon dioxide as originally absorbed. As long as you regrow the crop next year, the carbon impact of the fuel is neutral, and it won’t contribute to global warming.

The small carbon impact (the reason it’s 90% reduction not 100%) comes from the fact that at various places in the supply chain there will be some fossil fuel use. For instance, the agricultural machinery used to harvest the crop may be run on diesel which we account for in our carbon calculations.

Problem Child – The legacy of dodgy biofuels

Biofuels have a bad reputation in the transport industry. First generation biofuels called FAMEs (fatty acid methyl esters) contain those lipids now removed from HVOs, which can result in notorious performance issues.  

As anyone who has left milk out for too long knows well – fatty liquids provide an optimal environment for bacterial growth. In vehicles, microbial growth in the fuel causes terrible clogging, blocked filters and can seriously damage the engine.  

FAMEs also have poor performance below 10 degrees Celsius, requiring heated fuel tanks and large infrastructure investments to run a fleet on pure biofuels. There are plenty of news articles and accounts of operators experimenting with pure or high-blend FAMEs and having a dreadful experience of needing continual filtration and cleaning, ratcheting maintenance costs, and even fleet breakdown.

Blending lower concentrations of biofuel with diesel creates a more stable mix, however, this means your carbon reductions are typically maxed out at around 30%. 

A little-known fact is that all diesel fuel sold at gas stations in the UK is ‘B7’ – meaning it is a blend of 93% mineral diesel and 7% fatty acid biofuel. It’s an ‘under the radar’ way that the government has been reducing the emissions of transportation. Don’t worry! You’re not going to suddenly have a tank of liquid bacteria – 7% biofuel blend has no performance issues.

HVOs solve the problems biofuels once presented. With the fatty acids removed, you can drop them directly in to a diesel combustion engine and run the vehicle as normal. 

Why Now?

HVOs are finally affordable, but still a premium product

Ten years ago, HVOs were over 100% of the price of diesel. Today, they are around 10% above the diesel price. Fuel prices fluctuate daily– they are commodities traded on open markets and are extremely sensitive to supply and demand changes. Currently, diesel sits just above the £1 per litre mark, while HVO floats around the low teens (£1.14 ish). This price reduction is due in large to the adoption of new biomass sources from waste crop, and the increase in global feedstock supplied to European refineries, resulting in a record quantity of HVO being made and sold.

The Risks – Limited supply and fraud

There are risks to adopting HVOs, one of which concerns fraudulent feedstock supply. Some unregulated HVOs have been found to be made from virgin palm oil – which is in no way carbon neutral, as palm oil plantations are notoriously tied to devasting deforestation. At Recorra, we are firmly committed to purchasing HVOs only from suppliers that are RFAS certified – meaning their entire supply chain has been audited to ensure it does not contain palm oil.

There are also uncertainties around future supply limits. Technology permitting, we will continue to expand the sources of waste biomass needed for HVO feedstock. However, there is still a finite supply of waste, and HVOs alone cannot solve the energy needs of every transport company.

Recorra’s path to True Net Zero

HVO provides an interim solution to decarboniation, deeply cutting carbon emissions in the short term. This provides the time to scale up our electric capacity, with the aim of an entirely electric fleet run on green energy. This is the true net zero solution, and we hold this as our ultimate goal. In the meantime, let’s go HVO!