Is HVO the Future of Domestic and Agricultural Fuel in the UK?

The conversation around energy and fuel in the United Kingdom has shifted dramatically over the past decade. With the government’s ambitious target to achieve net zero carbon emissions by 2050, households, farmers, and businesses are under increasing pressure to find sustainable alternatives to traditional fossil fuels. One fuel that has entered the spotlight is HVO (Hydrotreated Vegetable Oil).

But is HVO truly the future of domestic and agricultural fuel in the UK—or just another transitional solution? Let’s take a closer look.

What Exactly Is HVO?

HVO, or Hydrotreated Vegetable Oil, is a renewable diesel alternative produced through the hydrotreatment of vegetable oils and animal fats. Unlike conventional biodiesel (FAME – Fatty Acid Methyl Ester), HVO undergoes a more refined process that results in a cleaner, higher-quality fuel.

Key characteristics of HVO include:

• 100% renewable: Derived from waste oils, fats, and residues rather than virgin crops.

• Drop-in replacement: Can be used in existing diesel engines, heating systems, and farm machinery without modification.

• Low emissions: Offers up to 90% reduction in greenhouse gas emissions compared to regular diesel.

• Longer shelf life: Unlike biodiesel, HVO is stable and doesn’t degrade quickly, making it ideal for seasonal or backup use.

The UK’s Current Fuel Landscape

In the domestic heating sector, more than 1.5 million UK homes—mostly in rural areas—still rely on heating oil. Similarly, agriculture remains highly dependent on diesel for tractors, harvesters, and generators. With the government moving away from fossil fuels, the search for greener alternatives is pressing.

Electric and hydrogen solutions are promising but not yet practical for many rural households and farms due to infrastructure gaps and high costs. This is where HVO presents itself as a realistic, immediate option.

Why HVO Stands Out for Agriculture

Farmers are under increasing scrutiny to reduce their carbon footprint while still maintaining productivity. HVO brings several advantages:

1. Compatibility with existing machinery
   Most farm equipment runs on diesel, and switching to electric or hydrogen alternatives would require significant capital investment. HVO can be used immediately in current engines without modification.

2. Cleaner air quality
   HVO drastically reduces particulate matter, nitrogen oxides, and sulphur emissions—contributing to better local air quality, which is crucial in farming communities.

3. Reliable performance
   Unlike first-generation biodiesels, HVO performs well in cold weather, stores longer, and burns cleaner, reducing engine maintenance.

4. Supporting sustainability goals
   With agriculture facing increasing pressure from both consumers and regulators to demonstrate environmental responsibility, HVO provides a practical step towards carbon reduction without disrupting productivity.

HVO in Domestic Heating

For households reliant on heating oil, especially in rural and off-grid areas, HVO could be transformative. Trials across the UK have shown that HVO can be used in standard oil boilers with minimal or no modifications. Homeowners benefit from:

• Lower carbon footprint—up to 90% less than kerosene.

• Future-proofing heating systems—avoiding costly boiler replacements.

• Reliable supply—since HVO is produced from waste materials, it reduces reliance on volatile fossil fuel markets.

The government has already supported pilot schemes where households switched from kerosene to HVO, demonstrating its potential to accelerate decarbonisation in off-grid homes.

Challenges to Widespread Adoption

Despite its clear benefits, HVO isn’t without challenges:

1. Cost
   Currently, HVO is more expensive than traditional heating oil or diesel. Without subsidies, it may remain out of reach for many households and farms.

2. Supply chain availability
   While HVO production is growing, it is not yet available at scale across the UK. Scaling up supply will require infrastructure investment.

3. Policy clarity
   The UK government has yet to give firm long-term commitments or subsidies for HVO adoption, unlike in some European countries where incentives have spurred demand.

4. Feedstock concerns
   HVO relies on sustainable waste oils and fats. Ensuring feedstock doesn’t compete with food production or drive deforestation is critical for its credibility as a green fuel.

Comparing HVO with Other Alternatives

• Electric heating and vehicles: Zero-emission at the point of use, but costly infrastructure upgrades are required, and suitability for large-scale farming equipment remains limited.

• Hydrogen: Highly promising for the long term, but still in early stages for domestic and agricultural applications.

• Biodiesel (FAME): Cheaper but less efficient, with storage and performance issues compared to HVO.

In comparison, HVO strikes a balance—offering significant carbon savings, immediate compatibility, and reliability, even if costs remain higher for now.

Is HVO the Future?

HVO has all the makings of a bridge fuel—a solution that can accelerate the UK’s journey to net zero while more radical alternatives like hydrogen and electrification scale up.

For the next decade, HVO could play a vital role in:

• Helping rural households reduce carbon emissions without expensive retrofits.

• Supporting farmers in transitioning to greener fuel without compromising productivity.

• Reducing the UK’s reliance on fossil fuels while strengthening energy security.

However, for HVO to become the true future of domestic and agricultural fuel in the UK, government policy and market support are crucial. Subsidies, tax incentives, and expanded supply chains could make HVO not just an interim solution, but a long-term player in the nation’s energy mix.

Final Thoughts

HVO is not a silver bullet—but it is one of the most practical, immediate solutions for reducing emissions in off-grid homes and the agricultural sector. While hydrogen, electrification, and other advanced technologies hold promise for the future, HVO provides a ready-to-use, low-carbon option today.

If the UK is serious about meeting its climate targets without leaving rural households and farmers behind, HVO deserves a central role in the transition strategy.

The question is not whether HVO works—it does—but whether the UK is ready to scale it fast enough to make a meaningful impact.