HVO100: The Commercial Case Your Competitors Already Made

How sustainable fuel is shifting from an environmental commitment to a competitive advantage in European road transport.

The conversation around HVO100 has changed.

A few years ago, it was primarily a sustainability discussion. Companies were exploring options, running pilots, reporting on emissions targets. The language was about commitment, about direction, about 2030 goals.

That phase is largely over for the larger players.

What is happening now is more concrete. Major logistics operators have moved from commitment to infrastructure. Large shippers are moving from preference to requirement. And the carriers who understood this early are winning lanes that others are not even being considered for.

What HVO100 actually is

Hydrotreated vegetable oil is a renewable fuel produced primarily from waste materials — used cooking oils, animal fats and agricultural residues. It can be used in existing diesel engines without modification. It reduces CO2 emissions by up to 90% on a well-to-wheel basis compared to conventional diesel.

That last point matters operationally. There is no new fleet required, no infrastructure overhaul, no driver retraining. The transition is primarily a fuelling decision.

That simplicity is part of why adoption has accelerated faster than many expected.

The infrastructure is being built

Large operators are not waiting.

CEVA Logistics has invested in HVO100 infrastructure across 18 locations in the UK, targeting 450 vehicles running on HVO by the end of 2025. Across Europe, CEVA operates more than 550 trucks powered by HVO100 and B100 biofuels, generating an annual saving of nearly 14,000 tons of CO2e.

Raben Transport has set a target of 75% of its fleet running on alternative fuels within five years, with HVO100 already operating across several European countries.

Major logistics providers including DHL and DB Schenker have committed to 30-50% emission reductions through HVO adoption.

This is no longer a pilot. It is a structural shift in how large operators manage their fleets and present themselves to clients.

Shippers are making it a condition

The commercial pressure is not coming only from regulation.

It is coming from shippers.

Large manufacturers, retailers and distributors increasingly include sustainability criteria in their tender processes. Carbon reporting, fuel type, emission reduction targets and certification requirements are becoming standard evaluation criteria alongside price and service reliability.

EU Renewable Energy Directive RED II mandates 14% renewable energy in transport by 2030. Several member states have introduced additional incentives. Urban low-emission zones are expanding. Scope 3 emissions reporting requirements are pushing shippers to account for the carbon footprint of their transport suppliers.

For a shipper managing its own sustainability commitments, choosing a carrier without HVO100 capability is increasingly a problem. Not a preference. A problem.

The lane logic is shifting

This creates a specific commercial dynamic for smaller carriers.

A tender is won on price. The lane starts. Twelve weeks later, the shipper's sustainability team flags that the carrier does not meet emission reporting requirements. The lane goes back to tender. A carrier with HVO100 capability wins it — often at a similar or slightly higher price.

The losing carrier never fully understands what happened. The service was acceptable. The price was competitive. But the conversation had already moved to a dimension they were not prepared for.

This pattern is repeating across European logistics markets. Not in every lane, not with every shipper. But with enough frequency that it has become a real commercial risk for carriers who have not yet addressed it.

The cost differential is manageable

The most common objection is cost.

HVO100 carries a price premium over conventional diesel. That premium varies by market, volume and supplier, but it is real. For a small or mid-sized carrier operating on thin margins, that premium requires careful calculation.

The relevant question is not whether HVO100 costs more per litre. It is whether the additional cost can be recovered through the lanes it unlocks, the contracts it protects and the premium some shippers are willing to pay for verified low-carbon transport.

That calculation looks different depending on fleet size, route structure, customer mix and fuel purchasing arrangements. But it is a calculation worth making — before a tender loss makes it urgent.

Availability has improved

A practical barrier two years ago was availability. HVO100 was not accessible at enough locations to make fleet-wide adoption realistic for many carriers.

That barrier has reduced significantly.

As of 2023, 35% of European truck stops offered HVO100, and penetration continues to grow. Fuel suppliers have expanded their networks. Several countries have introduced blending mandates and tax incentives that have increased commercial availability.

The infrastructure gap is closing. For carriers in Belgium, the Netherlands and Germany in particular, HVO100 access is now a manageable operational question, not a fundamental constraint.

What this means for smaller carriers

The HVO100 opportunity is not reserved for large operators with dedicated sustainability teams and capital budgets.

It is also relevant for smaller carriers who understand their customer base, know which shippers are moving in this direction and can make a targeted transition before their competitors do.

The carriers who act early will not only reduce their emissions. They will position themselves for lanes that are increasingly being awarded on sustainability criteria alongside price. They will meet certification requirements before those requirements become disqualifying. And they will have a credible answer when a shipper's procurement team asks about their carbon footprint.

The commercial case is not about sustainability ambition. It is about lane retention and lane access in a market that is quietly but consistently changing its selection criteria.

The question is timing

The shift is underway. The direction is clear.

The remaining question for smaller carriers is not whether to address this. It is when — and whether that decision is made proactively or in response to a contract that was not renewed.

The carriers who moved early on price transparency, on track and trace, on digital communication had an advantage for years before those capabilities became table stakes. HVO100 is following a similar trajectory.

The commercial case has already been made by the operators who did not wait for it to become obvious.