Running a diesel vehicle on fuel produced from used cooking oil and animal fats: this is now possible in Luxembourg. Since 11 May, Petro-Center has been selling HVO100 at its Esso station in Leudelange. Behind this acronym, which is still little known to the general public, the Luxembourg-based company sees an immediate solution for reducing some of the emissions from road transport without replacing vehicles already on the road.
HVO100, which stands for ‘Hydrotreated Vegetable Oil’, belongs to the family of renewable fuels. The product is manufactured from organic waste processed in European refineries equipped for this process. Used vegetable oils and animal fats undergo a hydrogen treatment process before being converted into a fuel compatible with current diesel engines.
“At the end of the process, you have a very pure fuel that meets diesel fuel standards,” explains Patrick Schnell, managing director of Petro-Center. According to him, combustion produces fewer residues and fewer particles than conventional diesel, which reduces engine fouling.
The group claims that HVO100 reduces greenhouse gas emissions by at least 85% over the fuel’s entire life cycle compared with conventional fossil diesel.
At a time of transition when every step forward counts, the introduction of HVO100 makes a tangible contribution to the decarbonisation of our supply chain.
The minister for the economy, 
The minister points out, however, that electromobility remains, in his view, “a key pillar” for achieving medium- and long-term climate targets. He describes HVO100 as “an immediate alternative for sectors where full electrification is not yet possible”.
HVO is a solution that can be used straight away without modifying the vehicle.
Drive more ‘cleanly’ without changing your car
Unlike electric vehicles, HVO100 does not require you to replace your vehicle straight away. The fuel can be used in most diesel engines compatible with XTL, a standard that covers a range of synthetic and renewable fuels.
“We would still advise checking that the engine is compatible with this type of fuel,” says Patrick Schnell.
The executive insists that performance remains comparable to that of a conventional diesel engine. “It’s the same performance,” he says. According to him, some owners of older or classic cars are already using this type of fuel because it is considered to burn more cleanly and be less harsh on the engine.
Petro-Center primarily targets businesses and transport operators committed to reducing CO₂ emissions. “The main customers will undoubtedly be professionals or transport operators who are required to offer clean transport options because of their clients,” explains Patrick Schnell.
Some large companies are already asking their logistics providers to reduce the carbon footprint of their deliveries. For hauliers, HVO100 enables them to meet these demands without having to replace their lorries straight away.
‘A piece of the puzzle’
As Europe steps up the electrification of transport, Petro-Center sees HVO100 as a complementary solution rather than an alternative to electric vehicles. Petro-Center does not present HVO100 as the sole alternative to electric vehicles. Instead, the company describes it as a fuel designed to support the energy transition in sectors where internal combustion engines remain difficult to replace.
“It’s one piece of the puzzle,” explains Patrick Schnell.
Even if we envisage a world that is 100% electric, there are certain applications where it will be very difficult to do without an internal combustion engine.
The managing director cites several scenarios where electric vehicles remain difficult to roll out on a large scale. “Take, for example, a fire engine or an ambulance that has to be on the road 24 hours a day,” he explains. “If you have a fire engine that’s just being charged, it’s a bit of a problem if a house is on fire.”
In his view, renewable fuels will continue to have a role to play in certain applications, particularly for heavy goods vehicles, emergency vehicles and aviation, where internal combustion engines remain difficult to replace.
“Even if we envisage a 100% electric world, there are certain applications and certain types of vehicles where it will be very difficult to do without an internal combustion engine,” he says.
Normally, the price of HVO should fall year on year, as the CO2 tax on fuels will narrow this gap.
Fuel is more expensive today, but the price difference ‘will narrow’
At the pump, HVO100 currently costs around six pence more per litre than conventional diesel in Luxembourg. Patrick Schnell points out that the price difference amounts to around nine cents in Germany. In his view, this additional cost reflects both the production cost of renewable fuel and the European regulations requiring a higher proportion of renewable components in fuels.
Against a backdrop of an energy crisis and rising fuel prices, Petro-Center acknowledges that the higher cost of HVO100 may put some drivers off. Patrick Schnell believes, however, that companies committed to reducing CO₂ emissions might be willing to accept this additional cost, particularly when their own customers are demanding more environmentally friendly transport. “A transport operator will only do this if their customer pays for it,” explains the managing director of Petro-Center. According to him, the fuel also offers certain technical advantages, with cleaner combustion that produces fewer residues and fewer particles in the engine.
The Chief Executive believes, however, that the price gap will narrow in the coming years as CO₂ taxes are gradually increased applied to fossil fuels, but not to HVO100. “Normally, the price of HVO should fall year on year, because the CO₂ tax "The tax on fuel will narrow this gap," he says.
According to him, certain recent periods in Germany already reflect this trend. During the latest rises in diesel prices, HVO100 sometimes remained cheaper for several weeks.
A solution constrained by the availability of raw materials
However, the development of HVO100 still faces one major constraint: the availability of raw materials. “There isn’t enough feedstock to replace all diesel with HVO,” admits Patrick Schnell.
Production relies mainly on used vegetable oils and organic waste collected in Europe. The company director points out that palm oil is not one of the materials permitted for this type of fuel in the European Union.
Since the product’s launch in Leudelange, Petro-Center reports that it is in talks with several companies and hauliers interested in reducing their fleets’ emissions. The group acknowledges, however, that the HVO100 market is still in its infancy in Luxembourg.
