Hydro-treated vegetable oil (HVO) is one of the quickest, cheapest and most significant solutions readily available to decarbonise yachting now.
HVO reduces CO₂ emissions by 90% compared to fossil diesel. Manufacturers and operators typically have to offset CO₂ emissions by paying for carbon credits or other schemes that help neutralise the emissions they produce (e.g., tree planting, etc). Since HVO only generates 10% of the emissions caused by burning diesel fuel, the offset cost is much lower.
Diesel price + diesel offsetting cost represents the full cost when using diesel (fuel cost plus the cost to neutralise the emissions it creates), whereas when you switch to HVO, you’re paying the HVO fuel price and a significantly lower offsetting cost. The price of HVO may be higher than diesel in some regions, but the savings in offsetting costs can balance or even outweigh the difference over time, making HVO more cost-effective in the long run.
Sustainable sourcing and certifications like ISCC or REDcert ensure HVO is produced responsibly, minimising environmental impact and supporting a circular economy.