BCC Research Blog | Industry Analysis and Business Consulting

The Future of Hydrotreated Vegetable Oil: Renewable Biofuel

Written by Heena Singh | Apr 22, 2024 1:26:27 PM

What is Hydrotreated Vegetable Oil (HVO)?

Hydrotreated Vegetable Oil (HVO) is a diesel-like fuel that can be produced without the need for fossil fuels by converting different vegetable oils and fats that contain triglycerides and fatty acids into renewable waste lipids. The term HVO is used for renewable diesel fuels derived from hydrogenation and hydrocracking of feedstocks such as tall oil, rapeseed oil, waste cooking oil, and animal fats. It is one of the major renewable diesel alternatives worldwide and is blended in fossil diesel and sold as mixtures at fuel filling stations. This blog defines the advantages of HVO, explores major industries using HVO, and also examines future market trends along with the key drivers for the hydrotreated vegetable oil market.

Importance/Advantages of Hydrotreated Vegetable Oil - Its Renewable Nature

  • The main advantage of biofuels, such as HVO, is that they are renewable, and their fuel imposes less threat to the environment than fossil fuels. A large amount of greenhouse gas (GHG) is associated with the usage of fossil fuels, which is one of the major contributors to global warming.
  • Fossil fuels discharge greenhouse gases and a substantial volume of pollutants into the air, contributing to air pollution that negatively impacts human health. However, using HVO fuels instead of fossil diesel produces up to 90% less CO2.
  • Low-carbon energy sources are in high demand, but most come with a large capital expense. Using HVO fuel is a great way to address this issue, as it allows businesses to cut their greenhouse gas (GHG) emissions significantly without investing appreciably in production facilities. Additionally, HVO can replace diesel, enabling many firms to use their present infrastructure and assets.
  • HVO is used in several industries, such as transportation, aviation, and construction. HVO renewable diesel is also suitable for use in agriculture, particularly in tractors and other diesel-powered equipment. This also applies to machinery and equipment used in construction, even though the fuel can be used in portable generators and commercial boilers.