Surge in Demand for HVO100 Renewable Diesel Amidst Electrification Challenges

As the electrification of the transport sector faces delays, HVO100, a renewable diesel produced by Preem, is gaining significant traction as an alternative fuel in Sweden. This renewable diesel can reduce fossil greenhouse gas emissions by over 90%, making it an attractive option for companies looking to lessen their climate impact.

Daniel Granquist, a business developer for HVO100 at Preem, stresses that many companies are unaware of its compatibility with existing diesel engines, noting that HVO100 is chemically similar to traditional diesel and can be utilized without modifications. The fuel is derived from renewable resources, including vegetable oils and animal fats, and is certified as being free from palm oil products. Currently, HVO100 is available at over 80 stations across Sweden, reflecting a marked increase in demand, particularly from the transportation sector.

Production capacity is expected to increase significantly, aiming for approximately 3 million cubic meters by 2035. While the current price of HVO100 is about 2-3 kronor higher per liter compared to traditional diesel, it remains a viable transition fuel for businesses that are not yet ready to electrify. Granquist believes that despite its higher cost, HVO100 serves as an immediate measure to help companies reduce their carbon footprints while the broader shift towards electrification continues.