June 14, 2024

Navigating HVO Sourcing

Navigating HVO Sourcing

Hydrotreated vegetable oil (HVO) has emerged as a promising alternative to traditional fossil fuels. However, navigating the complexities of HVO sourcing can be challenging. To address these challenges, Action Sustainability, in collaboration with the Supply Chain Sustainability School and several industry leaders, has produced a comprehensive guide titled "Responsible Sourcing of HVO – A Comprehensive Guide." This guide serves as a vital resource for organisations committed to environmentally responsible practices in the procurement of HVO.

Understanding HVO

HVO is a biofuel derived from vegetable oils through a hydrotreatment process. It is celebrated for its potential to significantly reduce greenhouse gas emissions compared to conventional diesel. However, like all biofuels, the sustainability of HVO depends heavily on the sourcing and production processes.

Objective of the Guide

The primary aim of the "Responsible Sourcing of HVO" guide is to present a balanced view of HVO, providing factual information and relevant procurement guidance. The guide does not advocate for or against the use of HVO but seeks to inform organisations about the potential benefits and risks associated with its use.

Key Components of the Guide

  1. Lifecycle Analysis of HVO
    • The guide covers the entire lifecycle of HVO, from raw material sourcing, processing, and shipping to final use. This comprehensive approach ensures that all stages of HVO production and use are considered, highlighting potential sustainability risks and impacts.
  2. Sustainability Benefits and Impacts
    • A thorough examination of the sustainability benefits and impacts of biofuels, with a specific focus on HVO, is provided. This section helps organisations understand the environmental implications of using HVO and compare it with other fuel options.
  3. Market Overview
    • The guide offers an overview of HVO availability and market size, helping organisations understand the current landscape of HVO supply. This information is crucial for making informed procurement decisions.
  4. Market Distortions and Risks
    • An analysis of potential market distortions affecting HVO is included. This section highlights factors that could impact the stability and reliability of the HVO market, such as supply chain disruptions and regulatory changes.
  5. Risk Mitigation Strategies
    • The guide provides recommendations for managing and mitigating sustainability risks within the HVO supply chain. These strategies help organisations minimise negative environmental impacts and ensure responsible sourcing practices.

The guide is the result of collaboration among several notable organisations, including Balfour Beatty, Kier, Costain, Sunbelt Rentals, Speedy, and the Environment Agency. Their collective expertise and input have been instrumental in creating a resource that addresses the diverse challenges associated with HVO sourcing.

For organisations committed to reducing their carbon footprint and adopting sustainable practices, the "Responsible Sourcing of HVO" guide is an invaluable resource. It equips them with the knowledge and tools needed to make informed decisions about HVO procurement, ensuring that their practices align with environmental sustainability goals.

The "Responsible Sourcing of HVO – A Comprehensive Guide" is available for download here.

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