HVO: the most realistic decarbonisation solution for construction machinery?

HVO: A Biofuel Designed for the Demands of the Field

Among the various alternatives explored in recent years, HVO has gradually emerged as one of the most relevant options for diesel-powered construction equipment. Produced from used cooking oils, agri-food residues and animal fats, this second-generation biofuel offers a major advantage: its composition is very similar to that of conventional diesel. This close similarity makes its adoption considerably easier. Unlike other alternative fuels such as B100, HVO requires neither significant engine modifications nor specific maintenance procedures. According to industry representatives, nearly 99% of modern diesel engines are now compatible with this fuel.

For manufacturers, this compatibility is a key consideration. Construction equipment is marketed worldwide and must operate in a wide range of environments, often under extreme operating and temperature conditions. HVO meets this need for simplicity and standardisation exceptionally well.

The Economic Challenge Remains

Today, HVO remains significantly more expensive than conventional diesel. Tax incentives can reduce the price gap to around ten cents per litre in some cases, but without these support mechanisms, HVO can cost two to three times more than traditional diesel.

In an industry where profit margins remain tight, this economic challenge is critical. Nevertheless, industry professionals point out that the overall impact on project costs remains relatively limited compared with the environmental benefits achieved. Several companies have already observed that their clients increasingly value the use of low-carbon fuels in tenders and projects with ambitious sustainability objectives.

The issue is therefore no longer purely technical—it is now both economic and political. The key question is how to create the right conditions to accelerate HVO adoption while ensuring that it remains commercially competitive.

The Most Realistic Transition Fuel?

In the short to medium term, HVO appears to be the most credible solution for supporting the decarbonisation of heavy construction equipment. Compatible with existing fleets, readily available, easy to distribute and capable of significantly reducing CO₂ emissions, it addresses most of the operational constraints encountered on construction sites.

However, its future will depend on two essential conditions: securing sufficient supply volumes and maintaining a stable tax framework capable of keeping the price difference with conventional diesel at an acceptable level.

From this perspective, HVO is not intended to replace electrification—it is designed to complement it. The industry is now moving towards a model in which smaller machines will gradually become electrified, while biofuels will support the transition of the most energy-intensive equipment.

In other words, before large-scale electrification becomes a reality across construction sites, HVO could well become the transition fuel the industry needs to reduce its carbon footprint today, without having to wait for the technologies of tomorrow.