HVO Fuel Market Conditions

Practical Insight for Businesses Navigating Decarbonisation

As UK businesses accelerate their journey toward Net Zero, Hydrotreated Vegetable Oil (HVO) has transitioned from a “novelty” fuel to a cornerstone of industrial decarbonisation. In 2026, HVO is no longer just a niche alternative; it’s a proven, scalable, direct drop-in replacement for red and white diesel that powers everything from national logistics fleet operations to critical hospital backup generators.

At Crown Oil, we provide nationwide HVO fuel deliveries and expert guidance, helping organisations reduce their net CO₂ emissions by up to 90% without the need for costly engine modifications.

This blog will set out the state of the UK HVO market in 2026 and what your business needs to know to stay compliant and competitive.

The landscape of HVO adoption in 2026

In 2026, the “electrify everything” narrative has met the reality of infrastructure upgrade timelines. While light commercial vehicles are moving toward EV, heavy-duty and off-grid sectors are increasingly turning to HVO to meet ESG targets.

Key sectors leading the switch:

• Logistics & HGV fleets: Where long-haul battery-powered technology still faces weight and range constraints
• Construction & plant: Heavy machinery operating on sites without a high-voltage grid connection
• Data centres & critical power: Ensuring backup generators meet tightening emissions & urban air quality standards
• Film & events: Providing a quieter, cleaner alternative fuel for temporary installations
• Agriculture: Reducing the carbon footprint of food production chains

HVO fuel supply and pricing in 2026

Feedstock availability

One of the key challenges facing the UK HVO fuel market is competition for sustainable feedstocks. Waste oils and fats, which deliver the highest carbon savings, are also in demand for Sustainable Aviation Fuel (SAF) production. This has tightened supply and kept prices above standard diesel.

Imports and market stability

The UK currently relies on imported HVO. Subsidised overseas production has created pricing pressure in recent years, leading to trade investigations and discussions around protecting domestic biofuel supply.

For businesses, this makes it more important than ever to work with trusted HVO fuel suppliers who can guarantee their security of supply in addition to product quality and all sustainability certification.

At Crown Oil, we exclusively supply traceable, responsibly sourced HVO to ensure consistent performance and verified emissions savings.

UK policy and the role of HVO fuel

HVO fuel in the UK is supported through the Renewable Transport Fuel Obligation (RTFO), which incentivises fuels that deliver genuine greenhouse gas reductions and meet strict sustainability standards.

While policy continues to evolve, particularly with increased focus on SAF, HVO remains a critical solution for road transport, industry and power generation. For businesses, it provides a compliant, recognised route to lowering emissions without operational disruption.

Is all HVO fuel sustainable?

Not all HVO is the same. The carbon savings of HVO fuel depend heavily on feedstock source.

HVO made from waste-derived feedstocks offers the greatest environmental benefit. That’s why sustainability certification, traceability and compliance with RTFO standards are essential.

All Crown Oil’s HVO is:

• ISCC Certified: We’re approved by the International Sustainability & Carbon Certification, and our product is also ISCC verified at import, with a fully validated and audible supply chain
• RFAS & RFAS Heat-Marine-Power approved: We’re approved under the Renewable Fuels Assurance Scheme under ref no. CO/P8/21, allowing us to provide our customers with a quarterly Renewable Fuels Declaration in arrears
• RTFO Compliant: Meeting the UK’s Renewable Transport Fuel Obligation standards

The future of HVO fuel in the UK: HVO as a “transition bridge”

Looking beyond 2026, HVO is expected to remain a key transitional fuel as the UK moves toward net zero.

What we expect to see:

• Continued demand from businesses seeking immediate carbon reductions
• Ongoing pressure on feedstocks and pricing
• Greater scrutiny on sustainability and reporting
• HVO used alongside electrification

With an increasing number of OEMs continuing to add HVO to their accepted fuel lists, it’s the most practical low-carbon diesel alternative available right now.