What is Renewable Diesel - HVO?

Hydrotreated Vegetable Oil (HVO) is transforming the way we think about sustainability and is one of the fastest-growing sustainable fuels in the world - and it’s now firmly on the radar of Australian businesses, fleet operators, and government alike.

HVO Facts

• Made from 100% renewable waste feedstocks - used cooking oils, animal fats, agricultural waste

• Chemically near-identical to fossil diesel - direct drop-in replacement, no engine modifications, no blending limits.

• Scope 1 CO₂ emissions - zero under Australia's National Greenhouse Accounts.

• Approximately 0.01 kg CO₂-e per litre on combustion - zero CO₂, trace CH4 and N₂O only.

• Up to 90% lifecycle greenhouse gas emissions reduction compared to fossil diesel.

• Formally recognised as a fuel category under Australian NGER legislation from 2023-24 onwards.

• HVO100 has full OEM approval across all major engine manufacturers.

How is HVO produced?

Unlike traditional biodiesel (FAME), HVO undergoes hydroprocessing to remove oxygen, sulfur, and aromatics, resulting in a stable, clean-burning fuel. The result is a stable, clean-burning paraffinic fuel that is chemically near-identical to fossil diesel, but without the carbon baggage.

Its paraffinic structure delivers efficient combustion, reducing emissions including particulate matter, NOx, and greenhouse gases. And unlike some biofuels, HVO doesn't depend on virgin crops - avoiding deforestation, land-use conflicts, and food supply pressures.

Waste and residue feedstocks now make up the majority of global HVO production inputs, led by used cooking oil (UCO) and animal fat residues. This trend toward advanced feedstocks is accelerating, improving both the sustainability credentials and lifecycle emissions of the fuel.

Benefits of Renewable Diesel HVO

The core case for HVO remains as compelling as ever:

• Drop-in compatibility - HVO can be used in existing diesel engines at any blend ratio, right up to 100%, with no modifications required and no disruption to operations.

• Significant emissions reductions - Using HVO produced from waste feedstocks like used cooking oil can reduce lifecycle greenhouse gas emissions by up to 90% compared to fossil diesel.

• Superior fuel quality - With a cetane number exceeding 70 (versus 40–55 for conventional diesel), HVO delivers better combustion efficiency, improved cold-weather performance, and longer shelf life than both fossil diesel and FAME biodiesel.

• Growing OEM approval - The list of manufacturers officially approving HVO100 continues to expand. CAT, Cummins, Komatsu, DAF, and others have confirmed full compatibility, meaning fleet operators can switch with complete warranty protection.

• Immediate impact  - Unlike many decarbonisation pathways that require capital expenditure or infrastructure change, renewable diesel delivers emissions reductions from the very first fill.

Australian Government Support for Renewable Diesel

• Fuel Quality Standards (Paraffinic Diesel) Determination 2025 - In February 2025, Australia legislated a new Paraffinic Diesel standard for the first time, formally recognising renewable diesel as a distinct product from fossil diesel. This is a foundational step that paves the way for stronger renewable fuel policy going forward.

• Future Made in Australia Innovation Fund - This package of reforms prioritises low-carbon liquid fuels as a strategic growth sector. It includes $250 million specifically directed toward SAF and renewable diesel, administered by ARENA.

• Productivity Commission recognition - The Productivity Commission identified renewable diesel as a critical pathway to reducing emissions in Australia’s heavy vehicle sector, further cementing its role in the net-zero transition.

• ARTICLE UPDATE SEPT 25: The Cleaner Fuels Program - The Federal Government has committed $1.1 billion to fast-track domestic production of low-carbon liquid fuels, including renewable diesel and sustainable aviation fuel (SAF). This investment signals a genuine commitment to building a local low-carbon fuel industry.

• ARTICLE UPDATE NOV 25: The NSW Renewable Fuel Strategy - In late 2025, NSW became the first Australian State with a dedicated Strategy designed to help meet the state-wide legislated targets of 50% emissions reduction by 2030, 70% by 2035 and net zero by 2050. The Strategy legitimises renewable diesel as a serious decarbonisation pathway and the practical low‑carbon option for hard-to-electrify sectors such as heavy road freight, construction, mining, agriculture, off‑road equipment and backup generation.

A Future with Sustainability in Mind

Renewable diesel isn’t a distant promise - it’s a fuel available right now, compliant with the Australian Paraffinic Diesel standard, and backed by growing government support. For businesses with hard-to-abate emissions in transport, mining, construction, marine, and agriculture, HVO offers one of the most practical and immediate decarbonisation tools available.

The policy momentum, investment commitments, and expanding OEM approvals of the past year have made the case for switching stronger than ever.

Ready to make the switch? Get in contact with the RD2GO team to find out how renewable diesel can work for your operations.

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