When a business decides it's time to cut fleet emissions, there's usually only one question that makes it to the table: should we go electric?
It's the option in the headlines and the board papers, and for most fleet managers it becomes the default conversation almost without anyone deciding it should be - not because electrification is wrong, but because renewable diesel rarely gets raised before the electrification conversation is already well underway.
For fleets that need to reduce emissions now, across vehicles that are not ready to be replaced, renewable diesel deserves a place in the plan alongside electrification.
Why Trucks Are The Sharpest Version Of This Problem
Australia’s heavy-duty truck fleet is a disproportionate source of transport emissions. In 2024, the Truck Industry Council estimated the fleet generates about 19.8 million tonnes of CO2-equivalent each year, equal to roughly 22% of transport-sector emissions and about 4% of Australia’s total emissions.
That makes trucks a much bigger emissions problem than their share of the national vehicle fleet suggests. BITRE recorded more than 21.7 million registered motor vehicles in January 2024, including approximately 754,000 light rigid, heavy rigid and articulated trucks. Heavy rigid and articulated trucks together accounted for approximately 521,000 vehicles - about 2.4% of the registered fleet.
The fleet is also relatively old. Volvo Group Australia cites an average truck age of around 15 years, while BITRE’s 2025 fleet data shows an average age of about 14–15 years across truck categories. Older vehicles remain in service for a long time: the Truck Industry Council has noted that a truck sold in 2024 may not leave the national fleet until 2052 under current retirement patterns.
This is the segment where the electrification-versus-fuel-switching decision matters most - and where the constraints on each pathway are most visible.
The Electric Vehicle Path
Battery-electric trucks, vans and heavy plant can eliminate tailpipe emissions, and the technology is no longer theoretical in Australia. Even so, the constraints are real for many fleets:
Capital cost - New heavy-duty electric trucks generally remain materially more expensive than comparable diesel models. The exact premium varies by specification, battery size, duty cycle, incentives and financing structure, so operators should model total cost of ownership rather than rely on a single multiplier.
Weight and payload - Battery packs add substantial tare mass, reducing available payload by roughly 5–20% for many electric trucks, and more in some heavy-duty configurations.
Road access - Under current Australian mass and access rules, some electric prime movers are treated as Restricted Access Vehicles, requiring permits or concessions on particular routes. This makes route-by-route assessment essential, especially for bridges, local roads and high-productivity freight networks.
Charging infrastructure. Australia’s public charging network is expanding quickly, but it is still not designed around heavy freight. The Electric Vehicle Council reported 4,268 public charging locations and 11,602 public connectors in June 2026, with around 1,560 locations offering fast or ultra-fast charging. Depot charging, grid connections, and highway charging for large trucks remain separate and more complex challenges.
Duty cycle and range - Model- and duty-cycle-dependent; newer Volvo variants advertise up to 470–700 km, depending on the use case. That can suit urban distribution, port operations and some regional routes, but it remains a constraint for long-haul, mining, remote and continuous-operation fleets.
Fleet turnover - Trucks are long-lived assets. The Truck Industry Council’s fleet modelling indicates that vehicles sold today can remain in the fleet for decades, meaning electrification through normal replacement will take time even where vehicles and infrastructure are available.
The Renewable Diesel Path
Renewable diesel offers a different route to fleet decarbonisation: switching the fuel rather than replacing the vehicle:
No new trucks. It is designed as a drop-in replacement for fossil diesel in compatible existing vehicles and equipment.
No new depot infrastructure. It can use existing diesel storage, dispensing and refuelling practices, subject to normal fuel-handling and quality controls.
OEM support. Major engine and vehicle have already approved HVO100 for use in specified modern engines.
Immediate deployment. A fuel switch can begin with the next compliant delivery, rather than waiting for a multi-year capital-replacement program.
That makes it worth considering for existing diesel assets while vehicle replacement and electrification are planned. Compatibility should still be checked against the specific engine, model year, fuel standard and manufacturer guidance—not assumed from the badge on the truck.
Trucks v. Renewable Diesel
Mercedes-Benz truck-engine testing: Reported unchanged power, torque and maintenance intervals with HVO in specified Euro VI engines, without engine or fuel-system modifications.
Caterpillar/Sandvik machinery testing: Confirmed HVO operation without engine or fuel-tank modifications, with no reported compromise to power or uptime. Machinery testing—not a road-truck trial.
Cummins QSK95 testing: Lower smoke and particulate emissions, comparable NOx, and approximately 3–5% higher fuel consumption by volume. Generator-set tests - not truck trials.
Mercedes-AMG PETRONAS freight trial: Reported an 89% reduction in freight emissions during a three-race HVO100 truck trial in 2022. This was a reported greenhouse-gas saving.
Which Manufacturers Already Approve HVO?
Several major truck manufacturers have already approved HVO compatibility for various engines and truck models. OEMs include: DAF, Mack Trucks Australia, Cummins Engines, Man Trucks, Mercedes-Benz Trucks, Scania, Volvo Trucks.
Before switching, operators should obtain confirmation for their specific vehicle or engine and ensure the delivered fuel meets the required specification.
Is Electric or Renewable Diesel Right For You?
Australia’s heavy truck fleet produces about 19.8 million tonnes of CO2-equivalent annually - around 22% of transport emissions - from a fleet that is old and slow to turn over. Electrification and renewable diesel are not competing strategies; they address different timeframes and different parts of the fleet.
For most Australian fleets, the realistic answer is sequencing, not choosing.
HVO can provide an immediate pathway to lower emissions across the existing diesel fleet, particularly while electric vehicles, depot power, grid connections and public charging catch up. Electrification can then be rolled out where it is genuinely practical: predictable metro and regional routes, depot-based operations, and vehicles nearing replacement.
For hard-to-electrify assets - long-haul trucks, mining plant, marine vessels, remote operations and equipment with long service lives - renewable diesel may be the practical near-to-medium-term option. That is not a contradiction of electrification; it is a bridge for the part of the fleet that cannot electrify quickly.
If your board or head office is asking what the plan is, “electrify by 2035” does not reduce emissions in this year’s reporting period. A fuel switch can.
To work out where HVO100 fits into your fleet’s decarbonisation timeline, get in touch with the RD2GO team:
Sources:
[1]
AECC and FEV Europe. Combination of advanced emission control technologies and sustainable renewable fuels on a long-haul demonstrator truck, SIA Powertrain & Energy Conference, June 2022. Heavy-duty tractor tested on B7 diesel and HVO. View source
[2]
Bureau of Infrastructure and Transport Research Economics (BITRE). Road Vehicles, Australia, January 2024. Registered motor vehicles by type as at 31 January 2024. View source
[3]
Bureau of Infrastructure and Transport Research Economics (BITRE). Road Vehicles, Australia, January 2025. Average vehicle age by vehicle type. View source
[4]
Caterpillar. Fueling the Move to Sustainability, July 2023. Cat C Series engines can run on HVO without modification, in place of or alongside conventional diesel. View source
[5]
Centurion. Battery Electric Vehicle Project. Off-grid electric truck depot in Perth with 4.4 MW of rooftop solar and 10.3 MWh of battery storage. View source
[6]
Clean Energy Finance Corporation (CEFC). CEFC and Volvo Group boost battery electric trucks by driving down costs, 9 December 2025. $70 million financing package to Volvo Group. View source
[7]
Cummins. Generator Set Performance on HVO Fuel: QSK95 Test Report Summary. Test report summary for a QSK95 generator set running on HVO. View source
[8]
Electric Vehicle Council. State of EVs 2026, published 28 September 2026. 4,268 public charging locations and 11,602 public connectors in June 2026; 845 fast and 717 ultra-fast locations (1,562 combined). View source
[9]
Mercedes-AMG PETRONAS. Team Powers European Season Using Sustainable HVO100 Biofuel, 17 October 2024. F1 team race trucks, marketing trucks and generators run on HVO100 through the 2024 European season. View source
[10]
Mercedes-Benz. Truck Models Approved for Alternative Fuel HVO, February 2016. Approval of HVO for Euro VI trucks with OM 470, OM 471, OM 936 and OM 934 engines. View source
[11]
National Renewable Energy Laboratory (NREL). Economy and Emissions Impacts from Solazyme Fuel in UPS Delivery Vehicles, NREL/TP-5400-68896, August 2018. Renewable diesel tested in UPS package cars and Class 7-8 day-cab tractors; 4.2% lower tailpipe CO₂. View source
[12]
Truck Industry Council. Response to the Low Carbon Liquid Fuels Consultation Paper, June 2024. Heavy-duty truck fleet emissions of 19.8 Mt CO₂ a year, 22% of transport-sector emissions and about 4% of Australia's total. View source
[13]
Volvo Group Australia. Press releases, April 2025. More than 80 battery-electric trucks delivered in Australia. View source
[14]
Volvo Group Australia. Volvo Group celebrates pioneering distance in Australia's longest ever electric truck journey. FH Electric range of up to 300 km. View source
Disclaimer
This article is intended as general information only and does not constitute engineering, financial, procurement or emissions-accounting advice. Vehicle costs, fuel availability, OEM approvals, emissions factors and charging infrastructure change frequently. Fleet operators should verify current figures with their vehicle, fuel and infrastructure suppliers and consult the relevant OEM before making fleet transition decisions.