AS Australian businesses grapple with fluctuating fuel prices, rising operating costs and increasing pressure to reduce emissions, many fleet operators are searching for practical ways to lower their environmental impact without sacrificing productivity.
While hybrid and electric vehicles continue to attract growing interest, particularly among urban operators, the reality is that many industries still rely heavily on diesel-powered vehicles and equipment. For these businesses, an alternative fuel known as Hydrotreated Vegetable Oil (HVO) is emerging as a viable solution.
Ford Australia is among the manufacturers promoting the use of HVO-compatible vehicles, highlighting renewable diesel as a practical option for fleets seeking to reduce carbon emissions without major changes to existing operations.
HVO, sometimes referred to as renewable diesel, is produced from waste products including used cooking oils, animal fats and agricultural waste. Unlike traditional biodiesel, HVO is a synthetic paraffinic fuel that burns cleaner and can be used in compatible diesel engines without modification.
Ford says a range of its commercial and utility vehicles are already approved for HVO use, including Next-Generation Ranger and Everest models built from 2022 onwards, Transit and Transit Custom vehicles meeting Euro 6.2 emissions standards, and the recently launched Ranger Super Duty.
One of HVO’s biggest advantages is its flexibility. It can be used as a standalone fuel or blended with conventional diesel in any proportion, allowing fleet operators to transition gradually without replacing vehicles, fuel tanks or refuelling infrastructure.
The environmental benefits are significant. Depending on how it is produced, HVO can deliver substantial reductions in greenhouse gas emissions compared with conventional diesel, particularly when manufactured from recycled waste materials.
There are also operational advantages. HVO produces less soot during combustion, helping reduce engine deposits and potentially extending engine life. It also performs well in cold conditions and offers a storage life of up to 10 years, making it particularly attractive for businesses operating remote sites or maintaining emergency and backup equipment.
Industry experts are keen to distinguish HVO from first-generation biodiesel, often known as FAME biodiesel. Traditional biodiesel blends are typically limited to lower concentrations and can sometimes require modifications or additional maintenance considerations. HVO, by contrast, meets the internationally recognised EN15940 fuel standard and is designed specifically as a direct replacement for conventional diesel.
A local example of HVO adoption can be found at Melbourne Airport, where the fuel has been successfully trialled across a fleet of Ford Rangers, Everests and Transit vans.
Following extensive testing and monitoring in partnership with Ford engineers, Melbourne Airport has now transitioned its entire Ford diesel fleet to renewable diesel and is installing a dedicated 30,000-litre HVO storage tank and bowser on-site.
Chris White, who oversees fleet fuel operations at Melbourne Airport, says the move has provided a practical pathway towards reducing emissions without the substantial infrastructure investment required for a fully electric fleet.
“We run a mixed fleet. Initially, everyone wanted to get on the EV and hybrid bandwagon, but it isn’t that simple for us,” Mr White said.
“To electrify our whole fleet would have required a massive investment in charging infrastructure. Using renewable diesel is much easier because there’s no need to change vehicles or install extensive charging facilities.”
Mr White also points to HVO’s long storage life as a major advantage for industrial equipment that may remain idle for extended periods.
While HVO currently costs more than conventional diesel — often around 50 to 70 cents per litre extra when delivered in bulk — White believes the environmental benefits and reduced maintenance requirements help offset the additional expense.
Although HVO is not yet widely available through public service stations, its growing adoption among commercial operators suggests renewable diesel could become an important part of Australia’s transport decarbonisation strategy.
For many businesses, the transition to lower-emission transport will involve a combination of technologies. While electric and hybrid vehicles will continue to play an increasing role, renewable diesel offers a practical, ready-to-use solution that allows existing diesel fleets to reduce emissions immediately while maintaining the capability and reliability operators depend on every day.
