In the past several years, the EU and the US have witnessed a marked increase in interest in hydrotreated vegetable oil (HVO) or renewable diesel (as it is more commonly referred to in the US).
HVO is a diesel-quality fuel, made by the hydro-processing of oils and fats, and is an alternative to standard biodiesel. It can also be further upgraded to biojet-quality fuel. Its superior technical qualities – reduced nitrous oxide (NOx) emissions, longer term storage stability, and superior cold flow properties for use in cold climates - make it a complete replacement for diesel. If its manufacture is also low carbon (as is the case when using waste oils) it also can reduce carbon dioxide (CO2) by up to 90%.
Its excellent environmental and technical properties have been noticed – proven both by its large pricing premiums and increasing global buildout. Global HVO production now stands at over 5 billion litres per year, with an additional 2 billion litres in announced projects in varying stages of development.
While this is a large percentage increase, even if all of this capacity came online, it still remains a minority position in the much larger biofuels...
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