The Future of HVO Fuel in the Energy Landscape

Adopting hydrotreated vegetable oil (HVO) is a smart choice for the future. The energy world is changing fast, and HVO can help you stay ahead. It’s a simple way to cut down on pollution without getting rid of your current diesel equipment. HVO is also more stable than regular diesel and better for the environment, making it a great option for many industries.

HVO is gaining momentum. With new ways to produce HVO, more government support and more places selling it, HVO is set to become a key part of the energy plans for businesses and government projects.

What Is HVO Fuel?

HVO is a renewable diesel alternative made through the hydrotreatment of fuel feedstocks. These include vegetable oils, waste animal fats and other organic feedstocks. Unlike traditional biodiesel, HVO is a drop-in fuel, meaning it can directly replace petroleum-based diesel without modifications to existing engines or infrastructure. Key properties include:

Key Benefits of HVO for Business Operations

For businesses operating in federal contracting, especially those in logistics, transportation, facilities support and emergency services, HVO supports performance and sustainability benchmarks. Here’s why:

• Compliance-ready: HVO helps meet federal sustainability mandates, including greenhouse gas (GHG) reduction targets and clean energy transition plans, without interrupting daily operations.
• Cost-effective transition: The economic impact of HVO fuel is multifaceted.Because HVO works in existing diesel engines, businesses can avoid costly equipment upgrades or retrofits.
• Operational continuity: HVO’s drop-in nature minimizes operational risk, which is critical in worst-case scenarios like disaster response and military deployments.
• Protects the bottom line: By reducing maintenance costs, lowering emissions penalties and improving fuel efficiency, HVO supports long-term cost containment.
• Supply chain resilience: HVO supports sustainability without dependence on volatile electricity grids or emerging battery tech.

HVO Fuel Trends and Predictions

HVO fuel adoption is increasing across the public and private sectors. In fact, HVO fuel market predictions forecast a growth of 8.11% between 2025 and 2032.

HVO’s instant compatibility allows organizations to align with stringent sustainability requirements while avoiding the disruption, capital expenditure and downtime typically associated with transitioning to alternative energy systems. Clean fuel mandates such as California’s Low Carbon Fuel Standard are accelerating the shift.

Transportation and logistics operators, including federal contractors, municipal fleets and defense support services, are among the earliest adopters. Heavy equipment operators are turning to HVO to reduce on-site emissions without sacrificing power or uptime. Facility management teams are deploying HVO in generators, boilers and other critical energy systems to meet net-zero energy targets.

Innovations in HVO Production

A key area of innovation in HVO production is the diversification of usable feedstocks. While traditional HVO production relied primarily on vegetable oils, advancements now allow for the use of additional sustainable resources.

• Waste oils and fats: Using waste cooking oils and animal fats for HVO reduces reliance on virgin vegetable oils and provides a circular economy solution for waste management.
• Advanced biofeedstocks: Research and development efforts are focused on using nonfood HVO fuel feedstocks such as algae, lignocellulosic biomass like agricultural residues, and dedicated energy crops. These feedstocks offer the potential for increased sustainability and reduced competition with food production.
• Pretreatment technologies: Innovations in pretreatment technologies can more efficiently process lower-quality or more challenging feedstocks, expanding the resource base for HVO production.

Additionally, advancements are being made to optimize the HVO production process itself, leading to improved efficiency, reduced costs, and enhanced environmental performance.

• Advanced catalysts: The development of novel catalysts is improving reaction rates, reducing energy consumption and increasing the yield of HVO from various feedstocks.
• Process intensification: Innovative reactor designs and process integration strategies are helping reduce capital costs, enhance energy efficiency and minimize waste generation.
• Hydrogen management: Optimizing hydrogen production, recovery and utilization within the HVO production process is crucial for improving overall efficiency and reducing carbon footprint.
• Carbon capture and storage (CCS): Integrating CCS technologies at HVO production facilities offers the potential to significantly reduce greenhouse gas emissions. This would further improve the sustainability of HVO as a transportation fuel.

Regulatory Trends Shaping HVO Adoption

As federal, state and international policies push toward decarbonization and cleaner transportation fuels, HVO is an appealing option for contractors, fleet operators and infrastructure managers. Here are the key regulatory trends driving adoption:

• Buy Clean procurement policies: Some states are prioritizing vendors and contractors that use low-carbon materials and fuels. HVO supports embodied carbon standards by lowering life cycle GHG emissions in construction and transport activities.
• EPA Renewable Fuel Standard (RFS): The RFS program sets annual renewable fuel volume requirements. HVO qualifies under the biomass-based diesel category and generates Renewable Identification Numbers, improving cost-effectiveness and market competitiveness.
• General Services Administration (GSA): GSA sustainability mandates encourage contractors to report and reduce operational emissions. Using renewable fuels like HVO strengthens bids under these environmental performance criteria.
• Inflation Reduction Act (IRA) incentives: The IRA includes tax credits and funding for clean fuels, including support for domestic renewable diesel production. These incentives are expected to increase HVO supply and reduce long-term procurement costs.
• EU Renewable Energy Directive (RED II): The European Union’s RED II has spurred investment in renewable diesel production, boosting global HVO availability.

Preparing Your Business for the HVO Transition

HVO fuel technology advancements focus on expanding applications, improving performance and enhancing sustainability. As with any operational shift, the success of transitioning to HVO fuel depends on thoughtful planning, risk management and the right partnerships.

Evaluate Operational Readiness

Start by thoroughly evaluating your existing fuel infrastructure, fleet and operational requirements. You’ll want to:

• Inventory diesel-powered assets.
• Confirm manufacturer approvals for HVO use.
• Assess on-site fuel storage and distribution systems.
• Review service intervals and maintenance programs.
• Identify priority use cases.

This evaluation helps you prepare for rollout with minimal operational disruption.

Mitigate Risks With a Phased Implementation

A phased approach allows you to identify potential issues early and build confidence across teams and stakeholders:

• Start with pilot projects in lower-risk or high-visibility areas to demonstrate impact and return on investment.
• Monitor performance data such as fuel efficiency, emissions output and engine behavior to guide full-scale deployment.
• Train personnel in fuel handling, storage and compliance tracking to ensure consistency and safety.
• Establish reporting protocols, especially if you’re pursuing sustainability certifications or reporting federal audits.

Partner With Experienced Fuel Providers

The success of your HVO transition hinges on working with qualified, experienced fuel suppliers that understand renewable diesel specifications, regulatory compliance and federal procurement requirements. Select a partner with proven experience delivering HVO and a reliable supply chain.

Join the Future of HVO Fuel Adoption With Foster Fuels

Foster Fuels has provided residential, commercial, transport, agricultural and emergency fuel services since 1921. We have a widespread network of fuel storage locations, well-maintained delivery vehicles and skilled professionals to support your unique business continuity requirements.

Contact us today for high-quality HVO fuel delivery for your business.