CFP’s James Forrest has highlighted Hydrotreated Vegetable Oil (HVO) as a powerful tool in combating climate change within the logistics industry. He notes its potential as a sustainable alternative to traditional diesel, leading to significant reductions in greenhouse gas emissions. Forrest discusses HVO’s carbon reduction impact, its potential to transform the logistics industry’s carbon footprint over the next decade, and the challenges of scalability.

James Forrest, Head of Marketing at CFP Energy, emphasises the potential of HVO

“HVO isn’t just an alternative; it’s a ‘drop-in’ replacement for traditional diesel. This means companies like FedEx can easily switch to this cleaner-burning fuel without having to invest in expensive engine modifications. This smooth transition helps remove both financial and operational hurdles, making it a smart choice for large logistics providers eager to lessen their environmental footprint.

Made from the hydrotreatment of vegetable oils and fats, HVO has a cleaner combustion profile — no sulphur, oxygen, or aromatic compounds. This leads to significantly lower emissions of particulate matter and nitrogen oxides (NOx). Plus, it performs better in colder temperatures and lasts longer than biodiesel, making it a reliable option for fleet operators.”

HVO is a giant leap towards long-term sustainability, says James

“Switching to HVO marks a significant step toward long-term sustainability in the transport sector. Projections suggest that FedEx could cut its lifecycle carbon emissions by as much as 80% by using HVO, which could have a huge impact on greenhouse gas emissions. Over the next decade, advanced biofuels like HVO are set to play a crucial role in helping logistics companies reach their ambitious sustainability goals — especially in areas where electrification isn’t yet practical.”

James identifies key trends that could reshape the logistics landscape

  • “Decarbonising heavy-duty vehicles: Unlike electric vehicles, which often struggle with battery capacity and charging infrastructure for long-haul trips, HVO is ready to go. It works seamlessly with existing diesel engines, providing an immediate solution for reducing carbon emissions.
  • Scaling availability: As we ramp up production and find more sustainable sources for feedstocks, the benefits of HVO will become even more widespread.
  • Blending potential: Since HVO can be mixed with traditional diesel, it allows for a smoother transition toward lower carbon footprints without the need for a complete overhaul of the fleet.”

But notes that there are challenges in scaling HVO

“While the demand for HVO grows, so too do the challenges and opportunities associated with its scalability. While HVO can be produced from various renewable feedstocks, the availability of sustainable sources, like waste oils, is limited. As demand for HVO increases, competition for these feedstocks could drive up prices, making it less competitive compared to fossil diesel.  

Additionally, producing HVO requires large-scale refineries that can handle hydrotreatment, and the current production capacity might not be enough to meet the growing global demand. Building new facilities or repurposing existing refineries will require a significant investment. 

Finally, to expand the use of HVO, we need to invest in storage, transport, and refuelling infrastructure across the UK and beyond, which is currently less developed than what we have for traditional fuels.”

However, opportunities abound, including:

“Investing in feedstock innovation is key. Researching alternative feedstocks like algae or agricultural residues could help reduce our reliance on waste oils and make HVO production more scalable. Building partnerships is also crucial; collaborations between governments, energy companies, and logistics providers can pave the way for the infrastructure needed to support the widespread adoption of HVO. Additionally, supportive government policies — such as subsidies and carbon pricing — can help speed up investment in HVO production and distribution.”

CFP Energy is supporting the shift to cleaner fuels, says James

“Partnerships between energy suppliers and logistics giants are essential for driving innovation in sustainable fuels. Companies like CFP Energy are key players in this transition, offering their expertise, certifying CO2 savings, and ensuring a reliable supply of HVO. By helping logistics operators grasp the operational and environmental benefits of HVO, these partnerships pave the way for developing sustainable and innovative solutions.”

The bottom line: We need regulatory support for wider adoption

“Regulatory support is key to the wider adoption of renewable fuels like HVO. Current UK and EU policies, such as the Renewable Transport Fuel Obligation (RTFO) and the EU Renewable Energy Directive (RED II), help create a favourable environment for biofuels. To boost HVO’s presence in the market, we need proposals for higher mandates, increased subsidies, and strong sustainability standards for feedstocks. As the logistics industry takes on the important challenge of becoming more sustainable, HVO shines as a transformative solution that can significantly cut carbon emissions and help create a more sustainable future.”