The yachting industry is urgently seeking cleaner alternatives to diesel, and HVO (Hydrotreated Vegetable Oil) has emerged as a ready, sustainable fuel that can reduce CO2 emissions by up to 90%. While HVO shows promising benefits in performance, storage, and maintenance, its high cost, limited availability, and lack of industry-wide adoption remain barriers. Still, early adopters and trials suggest it could be a viable transition solution while other technologies develop.
The race to eliminate fossil fuels is well underway, but where does the yachting industry stand? The loudest and most pressing topic within the industry’s sustainability conversation remains the hunt for a viable alternative to diesel. In 2023, the IMO published its Green House Gas Strategy, which outlined ambitious targets to reduce emissions from shipping – including a 20% reduction by 2030 – so, although the superyacht is exempt from many of the regulations associated with this strategy, the clock is still very much ticking, and the pressure to find an alternative to burning diesel is mounting for the sector’s credentials and responsibility. While much of the attention continues to focus on new technologies and innovations, particularly for new builds, what about the yachts already on the water? From hydrogen and methanol to electric and even nuclear, numerous alternatives to diesel are being explored, each with its own advantages and drawbacks.
However, one option that has emerged as an immediate, practical solution is HVO (Hydrotreated Vegetable Oil). Is running superyachts on used vegetable oil the answer the industry has been waiting for?
What is HVO? And is it all the same?
Biofuels are often grouped into the same category, but not all HVO is created equal. HVO is a renewable diesel produced by hydrogenating vegetable oils and animal fats. Unlike traditional biodiesel, such as FAME (Fatty Acid Methyl Ester), HVO undergoes a refining process similar to fossil diesel, making it a high-quality, drop-in fuel alternative. But there’s an important distinction: the sustainability credentials of HVO depend on its feedstock. Biofuels are categorised by first-generation and second-generation sources. First-generation biofuels are derived from crops grown significantly for fuel, like palm oil, which raises concerns surrounding land use, deforestation and food supply competition. On the other hand, second-generation biofuels come from waste products, such as cooking oil or byproducts from food production, offering a more sustainable solution.
A common misconception is that all HVO is second-generation, while all FAME biodiesel is first-generation. This isn’t entirely accurate. Just as biodiesel can be made from waste products, HVO can also be produced from palm oil, making it less sustainable. So, for yachting to maximise carbon reductions – up to 90% compared to fossil diesel – and avoid the negative impacts of first-generation biofuels, choosing second-generation HVO is essential.
“So, for yachting to maximise carbon reductions – up to 90% compared to fossil diesel – and avoid the negative impacts of first-generation biofuels, choosing second-generation HVO is essential.”
The benefits: A promising, premium option
HVO offers several advantages that make it an attractive option for yachts. Not only does it significantly reduce CO2 emissions by up to 90%, but when HVO is burnt, any CO2 released is then sequestered back into a plant on the next regrowth cycle; this closed loop ensures no net CO2 increase. Beyond impressive emission reduction, HVO also boasts a higher energy content per metric tonne than diesel, translating to better fuel efficiency. The high cetane number (a measure of ignition quality) allows for a more complete and cleaner combustion, further enhancing performance while reducing consumption.
“HVO offers superior oxidation stability, meaning it can be stored for up to 10 years without degradation.”
Challenges and considerations
Despite its potential and benefits, HVO adoption in yachting has been slow. Like any alternative, HVO is not without challenges and considerations. HVO is priced at a premium – generally around 30% higher than diesel in the European markets. However, evolving carbon credit trading schemes are expected to impact pricing. With major commercial shipping players leveraging carbon insetting (trading credits for the use of low-emission fuels), industry players believe that some suppliers may start offering competitive HVO pricing to yachts, making it more financially viable in the near future. Distribution remains another hurdle. While HVO production is increasing globally, the infrastructure of yachting-specific supply chains is still developing. Unlike road transport or large-scale shipping, the superyacht sector is a relatively small fuel consumer, meaning yachting must rely on these larger industries to drive the production and distribution of HVO. However, availability is expected to improve as demand grows and more yachts integrate HVO into fuel plans.
Regulatory pressures also play a key role. Many cruising regions are implementing stricter regulations on fossil fuel emissions, with some areas outright banning diesel-powered engines. As a result, industry-wide policies on alternative fuels are necessary to ensure a smooth transition and broader adoption of options like HVO.
“Major engine manufacturers such as MTU, Caterpillar, and Rolls-Royce have approved HVO as a direct diesel replacement.”
Industry adoption: Who is using it?
“Yachts running HVO also experience cleaner exhaust systems, reducing soot and enhancing guest experience.”
How to choose the right HVO
“Yachting has a unique opportunity; unlike emerging technologies requiring years of R&D, HVO is a ready-to-use solution.”
The data gap: Are we measuring the impact?
While HVO presents an immediate emissions reduction solution, we ask the industry again how well it tracks its real-world impact. The industry must improve data collection and transparency in emissions tracking. While tools such as the SEA Index and YETI are available to the fleet, these are voluntarily and not implemented on an industry-wide level to tackle the data. Could standardised, industry-wide data collection accelerate HVO adoption?
Yachting has a unique opportunity; unlike emerging technologies requiring years of R&D, HVO is a ready-to-use solution. But with questions around pricing, availability, and long- term viability, will the industry commit? One thing is clear: waiting for the perfect solution is not an option. Reducing emissions should have happened yesterday. Will yachts make the leap into HVO this summer, or will hesitation slow progress?
Author: Malcolm Moss | CEO & Founder of SEA Yacht Group
What are your thoughts on HVO fuel and its potential role in the future of sustainable yachting? Have you used it, or do you see challenges in its adoption? We’d love to hear your thoughts
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