Industrial Fuel Oil vs HVO for Commercial Operations

As sustainability continues to shape the future of energy consumption, UK businesses are now facing critical choices when it comes to powering their operations. For years, industrial fuel oil has been the go-to energy source for manufacturing, construction, agriculture, and other commercial sectors. However, with rising environmental concerns and the UK government pushing for net-zero targets, HVO fuel (Hydrotreated Vegetable Oil) has emerged as a promising alternative.

This article explores the key differences between industrial fuel oil and HVO, helping businesses across the UK make informed decisions based on cost, performance, availability, and environmental impact.

Understanding Industrial Fuel Oil

Industrial fuel oil, often referred to as heavy fuel oil (HFO) or medium fuel oil (MFO), is a derivative of crude oil that has traditionally powered large-scale operations. It’s widely used in boilers, furnaces, and engines due to its high energy output and availability.

Key Characteristics:

Derived from petroleum through the refining process.
Offers a high calorific value, making it ideal for heavy machinery.
Commonly used in shipping, manufacturing, power plants, and large commercial heating systems.
Has a higher carbon footprint and emits more pollutants compared to cleaner fuels.

While it remains a staple for many industries, mounting pressure to decarbonise and reduce emissions has made businesses rethink its long-term viability.

What is HVO Fuel?

Hydrotreated Vegetable Oil (HVO) is a renewable paraffinic diesel made through hydrotreatment of waste fats, oils, and vegetable matter. It is an advanced biofuel and a drop-in alternative to conventional diesel and fuel oils.

Key Characteristics:

Made from sustainable feedstocks (used cooking oil, animal fats, etc.).
Up to 90% lower carbon emissions than traditional fossil fuels.
Stable at low temperatures, ideal for UK climate.
FAME-free (Fatty Acid Methyl Esters), offering longer shelf life and improved engine cleanliness.

HVO has rapidly gained popularity in commercial sectors across the UK, especially where reducing environmental impact is high on the agenda.

1. Environmental Impact: HVO Takes the Lead

One of the most significant differences between the two fuels lies in their environmental footprint.

Industrial fuel oil is high in sulphur content and emits CO₂, nitrogen oxides (NOx), and particulate matter, contributing to air pollution and global warming.
In contrast, HVO fuel can reduce greenhouse gas emissions by up to 90%, making it a preferred choice for companies aiming for carbon neutrality.

For UK businesses seeking to align with ISO 14001 environmental standards or the government’s net-zero 2050 target, transitioning to HVO is a strategic move.

2. Performance & Engine Compatibility

Performance is crucial for commercial operations, and many businesses fear that switching fuels may impact their equipment.

Industrial fuel oil is known for its high energy density and long history of use in heavy-duty engines.
HVO, however, matches or even surpasses fossil fuels in combustion quality, efficiency, and cleanliness. It produces fewer deposits, extending engine life and reducing maintenance costs.

Importantly, HVO is a “drop-in” fuel, meaning it can be used in most existing diesel engines and fuel systems without modification. This is particularly appealing for fleet operators, construction firms, and logistics providers.

3. Storage, Stability & Safety

Storage conditions play a big role in operational efficiency.

Traditional fuel oils degrade over time and are more prone to bacterial growth, particularly in colder UK climates.
HVO is FAME-free, making it resistant to oxidation and microbial growth. It also has a longer shelf life, making it more reliable for seasonal or backup applications like standby generators.

Furthermore, due to its cleaner-burning nature, HVO poses fewer health and safety risks in enclosed environments or sensitive applications like food processing or hospitals.

4. Cost Comparison: The Budget Factor

It’s no secret that industrial fuel oil is generally cheaper per litre compared to HVO. However, the price gap is narrowing due to:

Rising crude oil prices.
Tax incentives for renewable fuels.
Long-term savings from reduced maintenance, longer engine life, and compliance cost avoidance.

For businesses looking at total cost of ownership rather than upfront fuel price, HVO starts to look like a more competitive option.

5. Supply Chain and Availability in the UK

Industrial fuel oil benefits from an established supply chain across the UK. It’s readily available through numerous fuel distributors and can be delivered in bulk quantities.

HVO, while newer, is gaining momentum rapidly. Many reputable UK fuel suppliers now offer HVO, especially in major industrial hubs such as Manchester, Birmingham, and London. As demand grows, logistics and pricing are expected to improve, making it even more accessible to UK businesses of all sizes.

6. Regulatory Compliance and Futureproofing

With the UK government’s push for cleaner fuels, businesses are increasingly facing environmental regulations, emission caps, and carbon reporting requirements.

Industrial fuel oil users may need to install scrubbers, apply for permits, or pay penalties for excessive emissions.
HVO allows for easy compliance and can be integrated into corporate sustainability reports, boosting brand reputation and stakeholder trust.

Conclusion: Which Fuel is Right for Your Business?

Choosing between industrial fuel oil and HVO depends on your commercial priorities.

If you’re focused on short-term costs, and already have infrastructure tailored to fuel oil, you may stick with it—for now. However, if you’re thinking long-term, HVO offers: