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HVO Fuel: A More Stable Fuel in the Coronavirus Aftermath

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The Coronavirus pandemic has brought devastation across the globe, while also significantly reducing emissions. But as the UK begins to recover from its first wave and the economy starts to re-boost, emissions are bouncing back. 

As a result, the UK government is working on a “green recovery” to reduce CO2 emissions while boosting the economy.

In addition to the environmental impact of fossil fuels, diesel is becoming increasingly more unstable as a result of an increase in legislated biodegradable content of fuel. This makes it prone to accelerated repolymerisation and microbial contamination when left dormant for long periods of time.

With many sectors heavily reliant on diesel fuel, the option to ditch fossil fuels has been somewhat impossible. Until recently, the UK lacked a straightforward, drop-in solution to diesel.

Is HVO fuel part the answer?

While alternative fuels have been previously hard to source in bulk in the UK, fuel producers are already working to address these hindrances. Setting aside the initial upfront cost, hydrotreated vegetable oil (HVO) fuel faces significantly lower operational difficulties than mineral diesel and runs less risk of contamination when used as a back-up fuel.

How much does HVO fuel cost?

The pricing drivers for HVO and petroleum-based fuels are substantially different, which means that the cost of HVO cannot be tracked in the same way as traditional diesel fuel. However, it doesn’t suffer from the same supply and demand swings of mineral diesel which makes it a much more stable fuel.

What’s more, HVO currently carries the same excise duty rates as mineral diesel fuel so there is scope for the UK government to help market uptake by differentiating the duty rate and helping to underpin the newly announced Green Transport Revolution.

As HVO is more widely implemented, the UK will see a decrease in production costs, forging savings that can be passed on to the user.

How will Covid-19 affect HVO fuel?

Before the Coronavirus pandemic, there was consensus that the demand for HVO would increase rapidly. However, with less fuel usage following lockdown, there is an increased worry of the UK’s ability to meet biofuel targets.

It remains unclear whether the pressure of decarbonisation will accelerate further following Covid-19 or if a recession will put climate concerns temporarily on hold.

During March/April, HVO prices saw a slight decline, driven by diesel price decreases. However, with many European biodiesel plants closing production, HVO is increasingly becoming a much more viable feedstock, whereas it was previously considered too expensive.

The industry and supply chains are well-established and with increasing pressure from biofuel sectors to sustain progress, there is a drive to reduce emissions in EU member states in order to accelerate current progress.

Guaranteed HVO supply

Speedy Fuels is one of the largest HVO stockists in the country, with bulk product ready for delivery and credit facilities available on the renewable diesel fuel. Get in touch to find out more about HVO fuel by calling 0330 123 5665

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About Speedy Fuels

Speedy Fuels are a Nationwide Fuel and Lubricants Supplier based in London, with depots throughout the UK. Our UK-wide… Read more

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