Hydrotreated Vegetable Oil Market Share, Size & Trends Analysis Report by Application (Renewable Diesel and Sustainable Aviation Fuel (SAF)), End-User (Transportation, Agricultural Machinery, Industrial), Feedstock, Technology, Region & Segmentation, 2024-2032

Hydrotreated Vegetable Oil Market Segmentation

The HVO market is segmented based on application, end-user, feedstock, and technology.

By Application:

• Renewable Diesel
• Sustainable Aviation Fuel (SAF)

By End-User:

Transportation

• Automotive (Passenger Cars, Heavy Trucks, and Heavy Buses)
• Maritime
• Aviation

Agricultural Machinery

Industrial

• Mining
• Construction
• Others (Manufacturing and Oil and Gas)

Others (Residential Buildings, Commercial Buildings, and Data Centers)

By Feedstock Type

• Edible Vegetable Oils
• Crude Palm Oil
• Used Cooking Oil
• Tall Oil
• Animal Fats
• Others (Non-Edible Vegetable Oil, Sludge Palm Oil Mill Effluent, and Refining Byproducts)

By Technology Type

• Standalone Hydrotreating Technology
• Co-Processing Technology

Regional Insights

North America

• The US
• Canada
• Mexico

Europe

• Germany
• The UK
• France
• Italy
• Spain
• Rest of Europe

Asia-Pacific

• China
• Japan
• India
• South Korea
• Southeast Asia
• Rest of Asia Pacific

Latin America

• Brazil
• Argentina
• Rest of Latin America

Middle East & Africa

• GCC Countries
• South Africa
• Rest of the Middle East and Africa

Key Market Segments

Renewable Diesel

The renewable diesel segment held a significant share of the global HVO market in 2022 due to its lower environmental impact compared to conventional fuels. Pure HVO is produced from renewable raw materials, ensuring no additional CO2 emissions during production. Many refiners start their biofuel journey by co-processing up to 10% renewable feedstock (such as animal fats, used cooking oil, and vegetable oil) in existing hydrotreating plants. This approach requires minimal capital investment and can generate HVO, bridging the gap until dedicated equipment for 100% biofeeds is developed.

Transportation

The transportation segment is expected to grow rapidly, driven by the increasing adoption of zero-emission vehicles. HVO offers a sustainable fuel option compatible with Euro 6 standard diesel engines, potentially reducing a truck’s emissions by up to 90%. As emission regulations tighten, HVO is poised to become a critical fuel source for the road transport sector.

Hydrotreated Vegetable Oil Market Dynamics

Drivers

One of the factors propelling the growth of the hydrotreated vegetable oil (HVO) industry is the increase in government initiatives to reduce carbon emissions. The need for alternative fuels and renewable energy is growing as more countries set ambitious targets to reduce their carbon footprint. The government is developing rules and subsidies to promote the adoption of biofuels and renewable diesel alternatives in the transportation sector, which uses a lot of HVO. The need to address environmental issues and reduce dependency on fossil fuels is driving up demand for HVO, which provides a sustainable and environmentally friendly alternative to conventional diesel.

Restraints

The availability and competitiveness of feedstock sources, such as vegetable oils and animal fats, may have an effect on the production of HVO. Competition with other economic sectors, like the food and chemical industries, may drive up prices and decrease the supply of acceptable feedstocks, so prices and availability are subject to change. The availability of feedstock and the level of competition are thus anticipated to constrain the growth of the hydrotreated vegetable oil market during the forecast period.

Opportunities

As countries and regions work to transition to cleaner, more sustainable energy sources, HVO provides a workable solution to lower the carbon footprint of the transportation sector. This transition presents a big opportunity for HVO, a low-emission and renewable fuel. By the end of the anticipated period, for example, biofuel output has increased by 15% to 165 billion liters, according to data released by the International Energy Agency. As of 2023, biofuels still make up roughly 90% of all renewable energy used in the transportation sector, despite the rapid growth of electric mobility. Two thirds of the increase in biofuel production comes from fuel ethanol, with the remaining third coming from hydrotreated vegetable oil (HVO) and biodiesel.

Challenges

Notwithstanding technological advancements, HVO production may still be more costly than traditional diesel refining. In some regions, the high cost of hydrotreating and feedstock quality maintenance may make it difficult to compete on price with fossil fuel. This is anticipated to be a significant obstacle to the growth of the HVO market during the forecast period.

Competitive Landscape

Hydrotreated Vegetable Oil Market is dominated by players like:

• Eni S.p.A.
• St1 Oy
• Neste
• Valero Energy Corporation
• PT Pertamina
• Repsol
• TotalEnergies
• UPM
• Phillips 66
• Chevron Renewable Energy Group, Inc.
• Green Biofuels Limited
• Petrobras
• ECB Group
• Preem AB
• Colabit Sweden AB

Recent Developments

In November 2022, Neste announced its agreement to acquire the business and related assets of used cooking oil (UCO) collection and aggregation in the U.S. from Crimson Renewable Energy Holdings. The acquisition encompasses shares in SeQuential Environmental Services and Pure, along with a UCO processing plant located in Salem, Oregon, U.S.

In September 2023, LG Chem and Eni announced plans to explore the construction of a biorefinery in South Korea. Eni anticipates that biofuels from vegetable oil, used cooking oil, and grease will play a vital role in decarbonizing the trucking, aviation, and shipping industries in the coming years.

November 2022 – Eni announced that it plans to build a third biorefinery at its Livorno site to produce hydrotreated vegetable oil. The bio-refinery will consist of three biofuel plants: a pre-treatment unit for biogenic raw materials, an eco-fining plant with a capacity of 500,000 tons/year and a plant for producing hydrogen from methane gas.

Hydrotreated Vegetable Oil Market Regional Analysis

The North American HVO market is expected to dominate in terms of revenue, supported by governmental regulations promoting renewable energy sources. The US, in particular, is likely to see rapid HVO market growth due to various supportive regulations, such as Renewable Identification Numbers, Renewable Fuel Standards, biodiesel blender credits, and LCFS credits. In the Asia-Pacific region, significant contributors include Malaysia, China, India, and Indonesia. The price differential between palm oil and crude for biodiesel has widened, reaching its highest level in the forecast period.

If opting for the Global version of Hydrotreated Vegetable Oil Market; then the below country analysis would be included:

– North America (the USA, Canada, and Mexico)

– Europe (Germany, France, the United Kingdom, Netherlands, Italy, Nordic Nations, Spain, Switzerland, and the Rest of Europe)

– Asia-Pacific (China, Japan, Australia, New Zealand, South Korea, India, Southeast Asia, and the Rest of APAC)

– South America (Brazil, Argentina, Chile, Colombia, the Rest of the countries, etc.)

– the Middle East and Africa (Saudi Arabia, United Arab Emirates, Israel, Egypt, Turkey, Nigeria, South Africa, Rest of MEA)