Renewable Diesel vs Fossil Diesel: What It Means For Emissions In Australia
Australia runs on diesel. From mining, construction, and transport & logistics, to agriculture and freight networks, diesel keeps the country moving. But it also remains one of Australia’s largest sources of emissions, meaning that the pressure to cut carbon is rising fast.
New climate disclosure rules, shareholder scrutiny, and the Safeguard Mechanism’s annual reduction targets are forcing businesses to act. For companies that rely on diesel-powered fleets or heavy equipment, renewable diesel offers a practical, immediate path to real emissions reduction without the need for vehicle replacement, new infrastructure, or costly downtime.
What is Renewable Diesel?
Renewable diesel (HVO) is a next-generation fuel made from 100% renewable waste sources such as used cooking oil, animal fats, and agricultural by-products. Unlike biodiesel, it’s produced through a refining process that chemically matches fossil diesel, making it a true ‘drop-in’ fuel.
That means no equipment changes, no compatibility issues and no modifications to existing tanks or engines.
How do Emissions Compare Between Renewable Diesel and Fossil Diesel?
This is where the change really matters. Australia’s National Greenhouse Accounts Factors (2024) list renewable diesel as having ZERO Scope 1 CO₂ emissions when used in place of fossil diesel.
The image below compares the burn profile of fossil diesel (left) with paraffinic diesel (right), based on data from the Alliance for Synthetic Fuels in Europe and the International Energy Agency. The stark difference is immediately visible. Fossil diesel produces dense, dark smoke, indicating incomplete combustion and increased particulate matter formation. Fossil diesel creates high levels of particulate matter, SOx and NOx.
Burning of conventional diesel (left) and paraffinic diesel (right)
By comparison, renewable diesel burns clear, with minimal visible smoke, demonstrating superior combustion efficiency. This clean burn isn't just visual. It directly translates to measurable emissions reductions. Renewable diesel has:
Lower levels of NOx and SOx, resulting in cleaner exhaust and reduced emissions of carbon monoxide, hydrocarbons, and particulate matter.
A near zero sulphur content, which prevents acid formation in engines and drastically cuts SOx emissions. These are major contributors to air pollution.
A much higher cetane rating (usually 70-90, compared with around 46-51 for fossil diesel). This means the fuel ignites more easily, burns more completely, and helps cut emissions.
Much lower aromatic content, which means less soot and fewer fine particles are produced during combustion.
A greater resistance to oxidation. This keeps the fuel stable for longer and reduces the chance of creating byproducts that add to emissions.
This is why the image matters for your sustainability goals - what you see is exactly what you get with renewable diesel and why it immediately delivers on reducing emissions.
How is Australia Shifting Toward Cleaner Fuels?
The Australian Government has already taken major steps to support the supply and adoption of renewable diesel. The new Fuel Quality Standards (Paraffinic Diesel) Determination 2025 formally recognises and supports renewable diesel, otherwise known as paraffinic diesel, as a distinct fuel class separate from conventional fossil diesel or biodiesel.
Initiatives like the Future Made in Australia Fund are backing low-carbon liquid fuels with $250 million in funding to help strengthen domestic supply chains. Meanwhile, major operators such as BHP and Rio Tinto have completed full-scale trials of renewable diesel in their Australian operations, with Rio Tinto already adopting it across some of its US operations. This proves that large-scale transitions are possible now.
Clear policies and fuel standards make it easier for businesses to switch to cleaner options. Across NSW, Victoria, Queensland and WA, more companies are now looking at renewable diesel as a practical way to cut emissions straight away and make real progress on their sustainability goals.
Why are Businesses Making the Switch to Renewable Diesel?
Switching to renewable diesel doesn’t just reduce emissions, it protects productivity. There’s no significant capital investment required, no downtime, and no impact on performance. Engines, machinery, and storage tanks all remain the same.
Truck, machinery and generator manufacturers, such as Cummins, CAT, MTU, Scania, Mercedes and DAF, now endorse renewable diesel. This makes it much easier for the construction, mining, freight and logistics industries to meet their 2030 net-zero reporting targets and show real environmental action without disrupting day-to-day operations.
Fuel the Change with RD2Go
We specialise in reliable renewable diesel supply, direct to businesses across Sydney, Melbourne, and Brisbane, to help you achieve immediate emissions reductions with no change to your existing operations.
The shift away from fossil fuels doesn’t have to wait for new technology or infrastructure. Renewable diesel is ready now, and so are we. Contact us to fuel your business with cleaner energy.