Europe is speeding up the transition to renewable fuels. The UK must follow suit.

By Magnus Hammick

The idea of powering our vehicles using waste was previously the stuff of science fiction. In the much-loved sci-fi classic Back to the Future, Doc Brown fuels his time-travelling DeLorean with a banana skin and other rubbish he had to hand. While we haven’t quite conquered time travel, waste-powered vehicles are very much a reality.

At GBF, our GD+ HVO fuel is a drop in solution for diesel engines, made from renewable feedstocks. Created from 100% waste products, including used cooking oil and other residues that are unfit for human consumption, no virgin crops are used in the production of our biofuel.

It has already been adopted by a range of customers, including DPD, DAF Trucks and ProGreen, who have implemented our HVO fuel across their fleets without having to change anything about their engines.

Transport remains one of the most significant barriers to the UK’s quest for net zero - with the industry contributing 27% of GHG emissions every year.[1] While policymakers have encouraged a switch to electric vehicles (EVs) to reduce reliance on fossil fuels, the lack of infrastructure and domestic charging capacity remains a huge hindrance to widespread adoption.

The sheer weight of EVs is also a major concern, as this results in much higher levels of particulate matter. With tyres found to produce 2,000 times more polluting particles than diesel exhausts, it is clear that EVs are not the perfect solution quite yet.[2]?

HVO is a solution for the here and now that can dramatically reduce GHGs. Replacing diesel-powered vehicles with our GD+HVO fuel can precipitate up to a 90% decrease in CO2 emissions, as well as an 85% decrease in particulate pollution and a 30% reduction in nitrogen oxide emissions.

However, there is a price barrier that prevents HVO from becoming the go-to option. Depending on the supplier, HVO can cost approximately 10-15% more than diesel.[3] While HVO is more efficient, helping to save long-term costs by reducing engine maintenance and repair costs, this higher upfront price is preventing its wider adoption across the UK.

Britain would speed up the transition to HVO fuel if it introduced price parity between diesel and HVO - taking inspiration from many of our forward-thinking European neighbours.

This year, GBF launched Ireland’s first biodiesel facility in Cork to import and store large amounts of our GD+HVO fuel. Our ambition in Ireland is to replace 50% of its diesel requirements with HVO within the next five years.

This is made possible as the Irish Government implements its Mineral Oil Tax (MOT) which is composed of both fuel excise and a carbon tax. Since the latter is not applied to biofuels, the price of HVO fuel becomes more competitive with fossil-derived diesel in the Irish market.

Sweden is another notable example, as the nation exempts high blended biofuels from energy and CO2 tax. Meanwhile, Sweden is Europe’s highest performing country in terms of reducing GHG emissions from road transport, with a reduction of 19% below 2010 levels.[4]

Other European countries including the Czech Republic, Denmark, Latvia and Luxembourg have introduced tax incentives to reduce reliance on diesel and to expedite the transition to renewable fuel.

If the UK Government were to replicate this reduction of taxation on HVO, it would enable companies to supply renewable diesel replacements at a far more competitive price point. This would quickly facilitate the take up of biofuel across the country, decreasing GHG emissions almost immediately.

Last week, the Department for Energy Security and Net Zero published its Biomass Strategy, setting out the Government’s ambition to create a greener UK economy, with biomass playing a key role in supporting the transition to net zero. The strategy shows encouraging signs that the UK is looking to scale up the domestic production of HVO fuels to support industries where barriers to decarbonisation remain the hardest.?

Ahead of an upcoming general election next year, the Government must build on this ambition by ensuring price parity between diesel and HVO fuels to support businesses and consumers to lower transport emissions.

[1] Transport and Environment Statistics: 2021 Annual Report (publishing.service.gov.uk)

[2] Car tyres produce vastly more particle pollution than exhausts, tests show | Pollution | The Guardian

[3] Transport and Environment Statistics: 2021 Annual Report (publishing.service.gov.uk)

[4] European Environment Agency (EEA). (26th October 2022) Average greenhouse gas intensity of road transport fuels by Member State, 2010-2020 (Figure 2)