Powering Progress: HVO Fuel and the Shift to a More Sustainable Transport and Marine Future

As the UK accelerates its transition towards net-zero emissions, the transport and marine sectors face growing pressure to reduce their environmental impact. The government’s “Decarbonising Transport: A Better, Greener Britain” plan outlines critical milestones for phasing out fossil fuels, presenting a timely opportunity for businesses to adopt more sustainable alternatives.

At Crown Oil, we champion Hydrotreated Vegetable Oil (HVO) as one of the most practical and effective solutions available today. With the potential to reduce net CO₂ emissions by up to 90%, HVO is a renewable diesel alternative already making a tangible impact across haulage, fleet, marine operations and much more.

Why HVO is Ideal for Haulage and Fleet Operators

For fleet and logistics managers, balancing the demands of operational performance with sustainability targets can be a major challenge. While the UK government’s long-term strategy strongly supports the electrification of the transport network, such as the transition to electric trains, buses, and cars, many commercial operations face significant barriers to electrifying their fleets.

The current electric vehicle (EV) charging infrastructure is often patchy and unreliable, particularly outside major urban centres. This makes route planning more complex for logistics businesses and can lead to costly downtime. Charging times remain significantly longer than diesel refuelling, and for time-critical industries, these delays are more than an inconvenience – they’re a potential liability.

In addition, electric vans and HGVs currently come at a high premium. Some industry sources suggest electric HGVs can cost up to twice as much as their diesel counterparts. For many operators, especially those with fleets that are not yet due for replacement, it simply doesn’t make economic sense to sell off existing diesel vehicles at a loss to invest in costly electric models with limited range.

This creates a growing need for practical, low-carbon alternatives like HVO fuel, which allow businesses to reduce their emissions immediately — without the cost and logistical issues associated with full electrification.

The FTA’s Logistics Report highlights how alternative fuels like HVO are an essential transitional step for logistics operators. It points to the lack of charging infrastructure and high vehicle costs as major barriers for hauliers and fleet operators looking to transition to electric. It also calls for urgent investment in the UK’s refuelling and recharging network to support low-emission freight vehicles.

The report further notes that while many operators are committed to cutting carbon, practical alternatives to diesel are still limited. As a result, renewable drop-in fuels like HVO offer the most viable and immediate solution for fleets under pressure to decarbonise.

Importantly, the Logistics Report also reveals that domestic transport emissions fell by 1.4% in 2023 compared to the previous year — the first drop since 2020. Despite this progress, transport remains the UK’s single largest contributor to greenhouse gas emissions, largely due to the use of petrol and diesel in road vehicles, particularly passenger cars. The report underscores that high costs for low carbon fuels, insufficient infrastructure, and patchy regulations continue to be key barriers to decarbonising the freight sector.

Encouragingly, the industry shows a strong willingness to act: 62.9% of respondents to the Logistics Industry Survey planned to invest the same in alternative fuels in 2024 as in 2023, while 28.8% planned to increase their investment. This signals growing confidence in renewable solutions like HVO as part of a broader strategy to cut emissions while maintaining operational reliability.

(All statistics and insights sourced from the FTA’s Logistics Report 2023.)

We practice what we preach — our entire delivery fleet runs on HVO, showcasing the fuel’s real-world advantages and carbon savings, reducing our scope 1 transport emissions by 89% since our 20/21 baseline and significantly reducing our customers’ scope 3 emissions.

The cost and policy pressure on the logistics sector

According to the Logistics Report, the industry contributed £185 billion to the UK economy in 2022 and consists of over 214,000 enterprises. It also pays an estimated £5.84 billion per year in fuel duty. Unsurprisingly, more than half of the report’s survey respondents called for a cut in fuel duty, arguing that lower costs would enable greater investment in low-carbon alternatives.

Fuel remains the largest cost for logistics businesses, accounting for around 29% of HGV operating expenses, according to the Spring 2024 Logistics Performance Tracker. And while HVO offers clear sustainability benefits, it typically comes at a premium compared to fossil diesel. For businesses committed to wider sustainability goals or facing Scope 3 supply chain requirements, the higher cost of HVO is a strategic investment – but it’s not an easy pill to swallow. Hence why Logistics UK continues to push for a differentiated fuel duty rate that would support the uptake of low carbon fuels.

Logistics UK also highlights the sector’s worsening financial strain. The Road User Levy has returned, and operating margins have tightened to around 2.5%. In the 12 months leading up to December 2023, 500 haulage firms collapsed — nearly double the number from two years earlier. Rising wage demands, higher interest rates, and regulatory complexity are squeezing operators across the board.

Despite this, there is an appetite for change. According to the Spring 2024 report, 71% of logistics businesses plan to maintain or increase their investment in decarbonisation this year. In the previous year’s survey, 62.9% planned to invest the same in alternative fuels in 2024 as in 2023, while 28.8% planned to invest more. This shows an encouraging trend toward cleaner operations, even in the face of rising costs.

The 2024 Logistics Industry Survey also sheds light on the role of Clean Air Zones (CAZs) and Low Emission Zones (LEZs). These zones are being rolled out across England and Scotland to accelerate fleet replacement and reduce urban emissions. Businesses operating non-compliant vehicles face daily charges and penalties, which has pushed some to consider alternative fuel vehicles.

Despite this regulatory push:

• 99% of logistics businesses still operate diesel vehicles
• Only 11.8% reported using biofuels – likely through drop-in options like HVO
• 24.5% operate electric vehicles. However, this figure does not indicate full electrification, and may represent a small number of EVs in otherwise diesel-dominated fleets
• 2% reported using hydrogen
• Just over 10% still use petrol

The survey found that 21.6% of businesses have invested in alternative fuels or electrification in response to CAZ regulations. Meanwhile, 25.8% have considered it but not yet committed – often due to financial constraints or uncertainty around regulations. A further 50.5% have not invested at all.

These insights confirm that transitional fuels like HVO remain an important bridge. They allow businesses to meet compliance and reduce emissions without the high upfront costs and infrastructure demands of full electrification.

(All statistics and insights sourced from the FTA’s Logistics Report 2023, the Spring 2024 Logistics Performance Tracker, and the Logistics UK Clean Air Zones and Net Zero Report 2024.)

HVO fuel at sea: A solution for cleaner marine operations

With international regulations tightening around maritime emissions, the marine sector is under mounting pressure to reduce its environmental footprint. Unlike road transport, where electrification is advancing steadily, marine applications present unique challenges that make full electrification difficult – particularly for deep-sea shipping, offshore operations, and other long-distance journeys.

Ships have long lifespans and often rely on extensive refuelling infrastructure, making it economically and logistically challenging to convert entire fleets to battery-electric or hydrogen systems. Furthermore, limited charging capabilities at ports and the sheer scale of energy required for shipping make liquid fuels an essential part of any near-to-mid-term decarbonisation strategy.

This is where HVO fuel plays a crucial role. As a drop-in replacement for marine gas oil, HVO enables operators to lower emissions without retrofitting vessels or overhauling supply chains.

According to the Marine Sector Emissions and Energy Transitions report, biofuels and ammonia are projected to play a significant role in decarbonising shipping between 2030 and 2050. These fuels are expected to account for a substantial portion of the emissions reductions from the global shipping fleet. Looking further ahead, ammonia is anticipated to grow in importance, with expectations that by 2070 it will replace much of the fossil fuels currently used in marine transport.

Moreover, the UK government recognises maritime as one of the key sectors that will likely require a long-term supply of low carbon fuels, including advanced renewable fuels of non-biological origin. The Renewable Transport Fuel Obligation (RTFO) is already expanding to provide more robust support for marine fuel users.

From tug boats and ferries to offshore service vessels and workboats, marine operators are already making the switch. Crown Oil stands ready to support your move to cleaner marine fuels today while keeping an eye on the evolving regulatory landscape and next-generation fuel technologies. Electrification remains limited at sea, making HVO a vital, scalable alternative.

Crown Oil’s commitment to renewable fuel solutions

As a trusted fuel supplier with over 75 years of experience, we are committed to supporting businesses in meeting their environmental responsibilities. Our strategic focus on HVO reflects our mission to lead the way in sustainable energy.

What we offer:

• Nationwide bulk HVO fuel deliveries
• Dedicated support and account management
• Expert advice on storage and fuel management
• Carbon reporting assistance for environmental compliance
• ISCC approved product
• HVO fuelled deliveries
• Certified carbon neutral business

The bigger picture: aligning with government goals

The UK government’s decarbonisation strategy includes several ambitious targets:

• By 2030: End the sale of new petrol and diesel cars and vans
• By 2035: Ensure all new cars and vans are zero-emission at the tailpipe
• By 2040: Phase out the sale of all new non-zero emission HGVs

Meeting these goals will require a collective effort, and renewable fuels like HVO will play a vital role, particularly in the near-term as zero-emission technologies continue to scale. As the plan makes clear, a mix of solutions is needed, and HVO provides an immediate, proven pathway to cut emissions in hard-to-electrify sectors.

Low carbon fuels, including HVO and other biofuels, currently deliver around one-third of all domestic transport carbon savings under the UK’s existing carbon budgets. In 2019 alone, low carbon fuels displaced enough fossil fuel to save an estimated 5.4 MtCO₂e, equivalent to taking 2.5 million cars off the road. Much of this progress is thanks to the Renewable Transport Fuel Obligation (RTFO), which continues to support the adoption of sustainable fuels.

The government acknowledges the importance of prioritising these fuels for sectors with limited low-emission alternatives, particularly aviation, shipping, and long-haul HGVs. While the use of low carbon fuels may need to be combined with carbon capture and storage in the future, their role in delivering immediate emissions reductions is clear.

Looking ahead, the UK has committed to increasing the RTFO target from 9.6% in 2021 to 14.6% by 2032. This is expected to save up to 20.8 MtCO₂e over that period. Furthermore, the government plans to review the use of higher-blend and drop-in fuels, support recycled carbon fuels, and extend incentives to renewable fuels of non-biological origin, particularly in the maritime sector.

All of this points to a strong, growing role for HVO and similar fuels in meeting national sustainability targets, while supporting UK industry, reducing regional disparities, and unlocking long-term economic value.

Whether you run a commercial haulage operation, manage a fleet, or operate marine vessels, HVO offers a powerful solution to reduce emissions without compromising on performance.

Join the growing number of businesses making the switch to renewable fuels. Contact our team at Crown Oil today and take the next step towards cleaner, more sustainable operations.