New Era Energy: Why fleets should give HVO another look

There are many paths to decarbonization in the on- and off-highway vehicle and equipment space, including alternative fuels for applications that require the kind of power an engine can provide.

Amber Geggus, director of renewables for UK fuel provider New Era Energy, said that among those alternatives, it’s important for diesel-powered vehicle and equipment fleets to look again at hydrotreated vegetable oil (HVO).

“HVO isn’t just a cleaner alternative to diesel,” Geggus said. “It’s a premium, high-quality fuel with tangible, strategic advantages that can make a real difference to your bottom line, your operations and your brand.”

A Fuel Upgrade

Also known as renewable diesel in the United States, Geggus called HVO an upgrade from fossil diesel.

“It’s a direct switch,” she said of HVO’s ability to serve as a drop-in replacement to fossil diesel without any modifications to the engine. “It’s been around for a while now. So many people now use HVO, it’s rapidly becoming mainstream.”

Amber Geggus. (Photo: New Era Energy)

While HVO can operate in virtually any existing diesel engine, many engine makers have gone on record as saying some or all of their engines are approved for operation with the fuel. These include Caterpillar, Cummins, Deutz, MAN Engines, Perkins, Rolls-Royce Power Systems/mtu and Rehlko.

Geggus also called HVO an upgrade to fossil diesel because of the benefits it offers. From an emissions perspective, she said HVO can deliver up to a 90 percent reduction in carbon dioxide (CO2) and decrease particulate matter (PM) by as much as 86 percent.

Another significant environmental benefit to HVO is that it’s biodegradable.

Additionally, unlike biodiesel, HVO is also non-corrosive, Geggus said. Some engines using biodiesel blends must be hardened against these corrosive effects. HVO can also be stored indefinitely without degradation, unlike biodiesel and fossil diesel, she added.

Fleets operating in northern climes can enjoy HVO benefits due to its cold-weather properties, Geggus said, compared to biodiesel, which contains fatty acid methyl esters (FAME).

“The strict manufacturing quality processes and FAME-free nature of HVO means that it does not begin to wax in cold conditions and block fuel filters,” she said. “This problem has been seen extensively, as modern B7 fossil diesel contains a 7 percent biodiesel content, which often contains FAME, a chemical group prone to solidifying at lower ambient temperatures.”

HVO can also reduce diesel engine noise because of its higher cetane number, which measures the fuel’s combustion quality. The higher the cetane number, the more effectively the fuel will burn in an engine. A 2024 article in the journal Fuel said HVO has a cetane number of 79.6 versus 54.6 for EN590 diesel. SAE International, in a 2012 paper it published about the technical performance of HVO, said the higher cetane number shortens ignition delay, which can in turn reduce engine noise.

Pricing Considerations

Despite the advantages, some fleets hesitate to adopt HVO because of the price premium, which can be as much as 15 percent more than diesel. Geggus noted that pricing can fluctuate significantly due to global supply chain factors, including the origin and type of feedstock used — for example, used cooking oil, animal fats or waste oils. Much of the HVO supply in the UK is imported, with feedstocks and finished fuels sourced from countries like the U.S., Singapore, China and parts of Europe, all of which experience pricing fluctuations on a day-to-day basis.

New Era Energy can deliver HVO in various ways, including its Fuel Box system. (Photo: New Era Energy)

Nonetheless, Geggus said she reminds skeptical fleets that HVO is considered a premium fuel. Additionally, she argues that HVO’s tangible benefits justify the added cost.

“As demand grows and production scales, HVO is getting closer to cost parity to diesel,” Geggus said. “You’re investing in cleaner operations without needing to invest in new machinery. No capex is required. No downtime. Just fuel up and go.”

To help customers understand the value proposition, Geggus said she often compares it to other premium products, such as high-octane gasoline or organic food. It’s not simply a substitute for diesel — it’s a fundamentally different fuel with cleaner-burning properties.

She added that fleets do not need to make a wholesale conversion to HVO all at once.

“Many fleets trial HVO at a single site and quickly expand when they see the results and hear the feedback from operators who prefer it,” Geggus said. “Indeed, some run a blend of diesel and HVO while they transition to get some benefit of the carbon reduction.”