Op-Ed: Should the maritime industry consider HVO?

While the IMO and other industry organizations continue to demonstrate their intent to develop the frameworks for commercial shipping and nation states to decarbonize the maritime sector, we have seen a slow-down in action. For example, Norway decided to delay the implementation of FuelEU regulations until the end of this year, creating further uncertainty for a global industry that accounts for roughly three per cent of the world’s emissions, a figure that is projected to rise in line with rises in global trade.

If the shipping industry is to meet more robust regulations, such as the expansion of the UK Emissions Trading System (UK ETS), and the Carbon Intensity Indicator (CII) rating system, it needs to embrace a wide range of solutions to this challenge.

One such energy solution that has already been embraced by many in the leisure sector, and other notable organisations like the RRS Sir David Attenborough polar expedition ship and the Royal National Lifeboat Institution (RNLI) is a drop-in, renewable alternative to standard diesel and Marine Gas Oil (MGO), called Hydrotreated Vegetable Oil (HVO).

Compared to standard diesel, HVO can immediately reduce emissions by up to 90 per cent across the product lifecycle. With it being a drop-in replacement, HVO is fully compatible with most diesel and MGO engines and therefore requires no additional investments to machinery or infrastructure. This also means that it can be blended seamlessly with MGO, making it one of the most flexible energy solutions available to the maritime industry at the moment.

The renewable fuel also has other specific qualities that are well-suited to the maritime industry, such as its strong performance in cold weather conditions due to its low cold filter plugging point (CFPP) down to -30°C, the fact that it can be stored for up to 10 years, and the higher cetane number results in superior ignition quality compared to standard diesel.

In the UK, roughly 784 million litres of HVO were consumed in 2024, with demand predominantly coming from the road transport and construction sectors, but we are seeing more industries embrace the fuel and anticipate demand to continue to rise for the rest of this decade.

Despite the fuel being available at major European ports like the Port of Aberdeen, Rotterdam, and Barcelona, HVO is arguably not a viable energy solution for the maritime industry in the here and now.

Unlike vehicles on land and some inland waterways, the vast majority of commercial shipping vessels are not subject to Renewable Transport Fuel Obligation support, which are credits that reduce the cost to businesses when switching to HVO, resulting in the fuel not being attainable for many.

With the right regulatory landscape, and with the UK is moving away, HVO could become an important transitional solution for the maritime industry. This year will be a strong indicator on which direction the sector is moving on the subject of decarbonization. If it is to meet its net zero emissions target by 2050, the industry will need solutions that can fuel this transition while it continues to innovate and invest in other, more longer-term solutions.

Gavin Wood is the director of liquid fuels sourcing at Certas Energy.