HVO stands for Hydrotreated Vegetable Oil and it’s the greener alternative to traditional oils like diesel, gas oil, and kerosene. With its importance growing as a more environmentally friendly option for heating homes, we thought now was the ideal time to take a closer look at it and see why it is most likely going to eventually supersede the likes of heating oil in homes around the country.
This is due to the fact that in 2019 the Government set a legally binding target to achieve net zero emissions by 2050. To meet this target, there is a need to make changes to the way we heat our homes, as fossil fuels currently account for 14% of the UK’s total carbon emissions.
The Government was planning to ban the installation of fossil fuel oil boilers from 2026 and stop the use of kerosene heating oil by the end of 2030. Homeowners with oil-fired central heating would have to switch to heat pumps which can be expensive and often require home improvements to be effective. However, on 20th September 2023, Prime Minister Rishi Sunak announced that the ban on the installation of new fossil fuel boilers is to be delayed from 2026 until 2035. This has come as welcome news for the many households throughout the UK that use fossil fuels to heat their homes. And, in addition, former Environment Secretary George Eustice has argued that the ban is unfair to rural communities and has pointed out that renewable liquid fuels such as HVO are a viable alternative to traditional oil.
All this means that HVO is going to eventually become the go-to choice for homes using heating oil.
What is HVO?
Hydrotreated Vegetable Oil (HVO) is a biofuel made from natural waste such as animal fats or processed vegetable oils. It is not the same as biodiesel as it is produced in a different way and follows a different fuel standard. It is thought to currently be one of the cleanest fuel alternatives as it cuts CO2 emissions by up to a massive 90%. At the same time it also reduces other harmful emissions like carbon monoxide, nitrogen oxide and particulate matter.
Now you might be forgiven for thinking that HVO is the new kid on the block. But it’s not. In fact, it’s been around for at least 15 years with studies having shown it to have long-term environmentally-friendly benefits. Which means it’s been tried and tested, proving itself as a viable alternative to fossil fuels.
How good is HVO?
Well, we’ve already mentioned that it can reduce your home’s CO2 heating emissions by up to 90%. But that’s not all it’s got going for it. HVO is 100% biodegradable, odourless and non-toxic, making it clean and safe to use. It also reaches EN 15949 standards, which is the same as paraffinic diesel fuels. And it holds International Sustainability and Carbon Certification (ISCC). This is an independent rating based on a fuel’s environmental impact and signifies that HVO meets basic environmental, traceability and social requirements.
What are the positives of HVO?
HVO is far better for the environment than fossil fuels, but you may ask, why not just change over to a heat pump?
Well, whilst heat pumps can be a good choice for well-insulated new builds, installation costs are high, and performance significantly lower with standard sized radiators. So often home improvements are needed, such as cavity wall and loft insulation, bigger radiators and underfloor heating, to ensure that your home is heated comfortably and with sufficient hot water - all of which can significantly add to the installation costs. According to Future Ready Fuels, the average cost to upgrade an oil heating home in EPC band E to an acceptable Band C is £12,300.
Before you go about installing a new heating system that might not be right for your home, it’s worth noting the other great benefits of HVO.
First and foremost, HVO is a drop-in fuel. This means you can use it in your existing heating oil boiler. All that’s needed is a comparatively low-cost conversion when your boiler is next serviced or upgraded which costs significantly less than installing a new heat pump system. The cost to install a heat pump can be between £7,000 and £14,000 for an air source pump and anywhere between £15,000 and £35,000 in the case of a ground source heat pump - or more, dependant on your individual property.
Next, HVO performs exactly the same as traditional domestic heating oil. So, there’s no loss of performance, as it’s every bit as efficient. Again, this tops heat pumps which work best in modern, highly insulated homes as they produce lower heat levels.
HVO is also excellent in cold conditions, making it perfect for our chilly winters as it has a very low freezing point of -40 degrees Celcius, and being FAME-free, it has a long shelf life too.
What are the negatives of HVO?
At the moment, there’s only one real negative and that’s the cost. HVO is more expensive than standard heating oil. However, Future Ready Fuel is currently in discussions with government on how best to introduce it for home heating to ensure that households are protected from high prices and running costs. And, as it becomes more popular, especially due to the government’s promise to reach Net Zero, prices are sure to lower as production ramps up to meet demand.
We hope this update on HVO has helped to put your mind at rest about the future of your home heating and how, with just a simple conversion, you can help the UK reach Net Zero.
Still got questions? Here are some of the main ones we hear concerning HVO
Q. Can I buy HVO in the UK?
A. Yes, a few suppliers have started selling HVO, but mainly to industry rather than homeowners. Here at Northern Energy, we’re excitedly waiting for prices to drop, so that we can begin offering it to our domestic customers, but we do already can supply it to our commercial and agricultural customers.
Q. Is HVO cheaper than heating oil and diesel?
A. Not yet, but prices are expected to drop over time as it becomes more popular and more production sites are built.
Q. Can an oil boiler run on HVO?
A. Yes, it just needs a quick and cost-effective conversion.
Q. How long before oil boilers are banned?
A. Thanks to a recent change in the Government’s Heating Bill, oil boilers have been given a reprieve. But they will need to be converted to use greener alternatives like HVO.
Q. What is the shelf life of HVO?
A. Would you believe that it doesn’t go off? Making it not just better than heating oil but also other biofuel options,
In the meantime, and until we are in a position to supply HVO to homes, we are able to supply our Premium Heating Oil which is a cleaner burning choice compared to our standard home heating oil. It reduces CO2 emissions, keeps fuel fresher for longer, and gives up to 15% improved boiler efficiency so saves you money as well.
If you’ve still got any questions, please don’t hesitate to get in touch with us on 01423 770 666 or alternatively email us at helpoil@northernenergy.co.uk. We’re always happy to have a chat and help however we can.