HVO vs Diesel: cost, CO2, performance… which fuel should you choose for 2026?

HVO: a renewable diesel made through hydrotreatment

HVO (Hydrotreated Vegetable Oil) is a synthetic fuel produced by hydrogenating vegetable oils, used animal fats or recycled cooking oils. Unlike conventional biodiesel (FAME/B100), it isn't made through esterification but through a hydrogen treatment that removes oxygen from the molecules, resulting in a hydrocarbon chain very close to fossil diesel.

This process yields a paraffinic, stable fuel free of sulphur and aromatic compounds, with a high cetane number. This molecular similarity to diesel is what allows HVO to be used pure (HVO100) or blended, without engine modification in most recent vehicle models.

Cost, emissions, fuel consumption and performance: what the figures show

• Pump price: HVO is generally more expensive than fossil diesel, with the gap depending heavily on local markets, purchase volumes and any support schemes in place.
• Life-cycle CO2 emissions: HVO enables a significant reduction compared with fossil diesel, with the exact extent varying by feedstock and production pathway.
• Fuel consumption: consumption per kilometre is comparable to diesel, with a generally small difference linked to a slightly lower energy density.
• Engine performance: HVO delivers cleaner combustion, reducing fouling and certain deposits, which can translate into easier long-term maintenance.
• Cold-weather behaviour: HVO's cold-flow properties are generally good, an advantage for fleets operating in areas with harsh winters.
• Storage: HVO keeps better over time than conventional biodiesel, with improved oxidation stability.

HVO is not a simple green additive: it is a fuel with physico-chemical properties close to diesel, which explains why it integrates so easily into existing fleets.

Engine compatibility and manufacturer approvals

HVO compatibility depends first and foremost on approvals issued by each manufacturer, not on a general rule applicable to all diesel engines. Many truck, van and machinery manufacturers have approved HVO100 for a large part of their recent ranges, while older models often carry no official guarantee.

Before switching, it is essential to check the manufacturer's manual, the EN 15940 standard governing paraffinic fuels, and the engine warranty conditions. A mixed fleet, combining approved and non-approved vehicles, complicates fuel logistics and requires rigorous vehicle-by-vehicle tracking.

Advantages, limitations and best-fit use cases

HVO's main advantage is enabling rapid decarbonisation without investing in new vehicles or charging infrastructure, unlike electric or hydrogen options. It is a particularly relevant transition solution for heavy fleets that are hard to electrify in the short term, such as long-haul transport, construction and certain agricultural uses.

Its main limitation remains availability, still uneven across regions, and a purchase cost higher than diesel that can weigh on profitability if volumes aren't planned for. HVO is therefore the best choice when the fleet is approved, local supply is reliable, and the company wants a measurable emissions reduction without waiting for fleet renewal.

Regulation and outlook for 2026

The EU regulatory framework encourages the use of renewable fuels such as HVO, notably through the RED III renewable energy directive and transport decarbonisation targets. The gradual rollout of ETS2, which is set to bring road transport under a carbon price, could strengthen HVO's economic case as the carbon cost on fossil diesel rises.

For companies subject to CSRD, the type of fuel consumed by the fleet is also becoming an element of non-financial reporting that needs to be documented. Getting ahead of these changes in 2026 makes it possible to approach upcoming regulatory deadlines calmly, rather than switching fuels under pressure.

Every fleet has a different profile depending on the vehicles operated, the routes driven and the supply areas available. Heeding's free Flash Diag lets you assess in a few minutes whether HVO is a good fit for your fleet and your operations, before making any commitment.