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Biofuel (HVO)

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What is Biofuel (HVO)?

Hydrotreated Vegetable Oil (HVO) is a type of paraffinic diesel that is produced from various bio-based feedstocks, including plant oils, animal fats, and waste materials. Unlike FAME, HVO undergoes a refining process that involves hydrogen treatment, resulting in a high-quality fuel that is indistinguishable from petroleum gas oil in terms of its general characteristics and performance. This advanced biofuel can be used directly in diesel engines without any modifications and is therefore considered a drop-in fuel.

For HVO to be a net zero-emission fuel, the carbon released during combustion must be offset by the carbon absorbed during the growth of the resources used in the production. Feedstocks must be sustainably sourced for HVO to be a sustainable fuel option.

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At a glance

Resources	Production	Bunkering and ports	Handling and storage onboard	Propulsion
Plant oils, animal fats, recycled cooking oil, waste biomass	Hydrogenation	Same technology & infrastructure as for conventional fuel oil	Same technology & infrastructure as for conventional fuel oil	Conventional fuel oil engines

The readiness level view shows Technology on a scale from 1 (lowest) to 9 (highest), and both Investment and Community on a scale from 1 (lowest) to 6 (highest). In the supply chain view all figures are displayed on a percentage basis to allow like for like comparison, against a scale in 10% increments.

Biofuel (HVO)

Biofuel (HVO) data insights

Technology Readiness Levels (TRL)
Investment Readiness Levels (IRL)
Community Readiness Levels (CRL)

Technology	Rating	Description	Justification	Challenge
Resource	9	Production and product fully operational	Supply chains of sustainable feedstocks have been demonstrated. Resource availability is a limiting factor in uptake of HVO, as there is high demand from several sectors that need to achieve carbon reductions (e.g. aviation, automotive).	Sustainable resource supply chains need to be scaled globally to meet demand from all sectors.
Production	8	Manufacturing fully tested, validated and qualified	The hydrogenation process is well established in certain regional hubs, although energy intensive and costly. The regionalisation of HVO production for shipping is based on feedstock availability and shipping demand profiles. The paraffinic fuel standard EN 15940 defines the requirements the fuel must comply with.	For a global scale-up to happen, there needs to be certainty in feedstock supply globally.
Bunkering and ports	9	Production and product fully operational	From a technological perspective, there is no change to infrastructure required as this is a drop-in fuel.	There is no challenge.
Ship - Onboard handling and storage	9	Production and product fully operational	This is indistinguishable from petroleum gas oil, and must comply with the paraffinic fuel standard EN 15940 - it is considered a drop in fuel so no (or minimal changes) are required onboard.	There is no challenge.
Ship - Propulsion	9	Production and product fully operational	This is indistinguishable from petroleum gas oil, and must comply with the paraffinic fuel standard EN 15940 - it is considered a drop in fuel so no (or minimal changes) are required onboard.	There is no challenge.

Investment	Rating	Description	Justification	Challenge
Resource	5	Market competition driving widespread development	HVO feedstocks are limited to oils and fatty acids, and concerns over sufficient long-term availability of these is limiting high commercial uptake. Investment in feedstocks for shipping use is limited due to competition for use in other sectors, such as aviation.	Potential long-term availability of cost-effective, sustainable resources needs to be proven to trigger investment in these resource supply chains.
Production	5	Market competition driving widespread development	The hydrogenation process is well established but energy intensive, therefore is a costly process. There are multiple commercial applications, and shipping demand exists although shipping is competing with other sectors such as automotive and aviation to secure supply of biofuels. The majority of investment in HVO production is for other sectors.	The main challenge lies in limited feedstock availability across more geographical locations. Demand from shipping exists, however it is limited since HVO is an expensive option for shipowners (due to the energy intensive production process), and therefore not always favourable - despite being considered a drop-in fuel.
Bunkering and ports	5	Market competition driving widespread development	Due to its high value, HVO requires its own storage in ports. Storage capacity at ports globally is limited, limiting supply availability to specific bunker hubs. No investment is needed in infrastructure/technology changes as this is a drop-in fuel.	Storage capacity needs to be dedicated to HVO - for this to happen both demand and supply availability need to be sufficient at bunkering hubs to trigger investment.
Ship	5	Market competition driving widespread development	The cost and availability of the fuel is limiting uptake for ocean going vessels although there are some commercial applications (e.g. tug boats). Since this is considered a "drop in" fuel, investment in the technology at ship stage is minimal and low risk.	HVO needs to be proven a commercially viable option for increased uptake to meet carbon reduction targets.

Community	Rating	Description	Justification	Challenge
Resource	6	Processes well-defined to resolve stakeholder issues, with widespread stakeholder acceptance	Resources cultivation and harvesting have been proven, however regulatory framework for lifecycle assessment is more established through the interim guidelines, with LCA guidelines from IMO now being finalised. Community acceptance is subject to the assessment and mitigation of sustainability implications, such as deforestation and negative impacts from land use changes for feedstock harvesting. Widespread adoption of sustainability certification (which must be provided by fuel suppliers) creates evidence that will increase community acceptance.	LCA guidelines need to be finalised at the IMO (work in progress).
Production	5	Increased transparency and formalised processes driving momentum for change	Fuel quality standards exist. Lifecycle assessment and socio-economic impacts of the production process exist but are not necessary fully validated by stakeholders across the global supply chain. Widespread adoption of sustainability certification (which must be provided by fuel suppliers) creates evidence that will increase community acceptance.	LCA guidelines need to be finalised at the IMO (work in progress).
Bunkering and ports	6	Processes well-defined to resolve stakeholder issues, with widespread stakeholder acceptance	Community acceptance and applicable regulatory frameworks in place.	There is no challenge.
Ship	5	Early stage solution formation to tackle stakeholder issues	Current environmental regulations focus on tank-to-wake rather than well-to-wake emissions, although MEPC 80 has brought in interim guidance in the use of biofuels, which incorporates current lifecycle analysis formulae which are defined by independent proof of sustainability certification. This will be rescinded immediately upon operationalisation of a well-to-wake GHG methodology through the IMO LCA guidelines. Additionally, emission profiles of biodiesels vary depending on feedstock type.	Lifecycle emission profiles need to be developed for biodiesels produced using varying feedstocks need to be developed as evidence for communities and compliance. Fuel quality standards and lifecycle assessment needs to be further developed and accepted for biofuel to become more widely used.

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Biofuel (HVO)

What is Biofuel (HVO)?

At a glance

Biofuel (HVO)

Biofuel (HVO) data insights

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