The report analyses the global HVO market based on source, application, and end-use industry segmentation. These segmentations are further analyzed at the global and regional levels. The base year considered for analysis is 2022, and the market estimates and forecasts are given from 2023 through 2028. The market estimates are only provided in terms of volume (kilo tons) and revenue (U.S. dollars, millions).
By source, the market is classified into vegetable oil, crude palm oil, used cooking oil, animal fat, and others (including biomass). Based on application, the market is segmented into transportation fuel, power generation, and others (including machinery in agriculture, marine, etc.). Based on the end-use industry, the market is segmented into automotive, aviation, industrial, and others (including marine, agricultural machinery, and construction).
Report Includes
- An overview of the global market landscape related to hydrotreated vegetable oil (HVO)
- In-depth analysis of global market trends, both in terms of value and volume, featuring historical revenue data for 2022, estimated figures for 2023, as well as forecasts for 2024. This analysis includes projections of Compound Annual Growth Rates (CAGRs) spanning through 2028.
- Evaluation of the current market size and revenue growth prospects specific to hydrotreated vegetable oil (HVO), accompanied by a comprehensive market share analysis categorized by source, end-user, application, and geographical region
- A look at the innovations, technological advancements, and insights into government policies and regulations promoting biofuels
- Discussion on ESG challenges and ESG practices in the HVO industry
- Market share analysis of the key companies of the industry and coverage of their proprietary technologies, strategic alliances, and other key market strategies
- Comprehensive company profiles of the leading players in the industry
Table of Contents
Executive Summary
Growing concerns about the effects of fossil-based fuels on the environment are anticipated to enhance the demand for HVO, an environmentally friendly and functional substitute for fossil fuels. Several countries, such as Germany and the U.S., have enacted laws and policies to encourage the use of biofuels and reduce emissions. HVO can be utilized as a renewable fuel in current diesel engine vehicles and shares a chemical composition with fossil fuels.
Hydrotreated vegetable oil (HVO) can assist enterprises in adhering to sustainable rules and bolster their reputations for sustainability. HVO is majorly used as a biofuel in various applications such as transportation fuel and power generation. Overall, the need for HVO is enhanced by the goal of creating a more sustainable and environmentally friendly economy, increasing energy security, and satisfying consumer demand for eco-friendly goods and materials.
The major HVO producers constantly struggle to become more sustainable to maintain dominance in the growing market for sustainable fuels. Therefore, they observe various legislation, funding schemes, and technological advancements that will boost demand for HVO. HVO has also been approved as an aviation (bio jet) fuel based on ASTM D7566-14. In 2011, an updated standard version was published, allowing the addition of up to 50% biobased components (HVO) to conventional jet fuel. HVO is, therefore, an important alternative to implementing renewable aviation fuels (ETIP Bioenergy, 2020).
HVO is recognized as a sustainable alternative to conventional fossil fuels, aligning with global efforts to reduce greenhouse gas emissions (GHG). Government policies and regulations promoting biofuels further propel market growth. Additionally, the growing emphasis on energy security and the need for diversified fuel sources drive investments in HVO production. Technological advancements and increased production efficiency also play a crucial role in making HVO more economically viable. The market’s responsiveness to consumer preferences for renewable, cleaner energy solutions amplifies its momentum.
In 2022, the German national railway company, Deutsche Bahn, partnered with Shell to procure HVO for non-electric train applications. This all started with the DB Sylt Shuttle train, one of Germany’s most famous and scenic train connections. This significant turning point demonstrates how vital clean HVO channels are to achieving significant decarbonization for current transportation modes.
Companies Mentioned
- Chevron Renewable Energy Group
- Diamond Green Diesel
- Eni Spa
- Neste
- Preem AB
- Repsol
- Shell Plc
- Totalenergies
- UPM Biofuels
