Recent press reports have highlighted that the UK Government is investigating potential fraudulent use of virgin palm oil in the feedstock (source material) of the renewable diesel known as Hydrotreated Vegetable Oil (HVO). The BBC article of 9 April 2025 suggests that virgin palm oil, which is linked to deforestation, may be entering the supply chain mislabelled as POME (palm oil mill effluent), a waste byproduct used as a feedstock for HVO.
Stance on sustainable HVO production
The Cruising Association (CA) has consistently maintained the view that, in order for HVO to play a part as a transitional fuel in the decarbonisation of existing diesel engines in recreational boats, it must be produced from feedstocks which meet the sustainability and greenhouse gas (GHG) requirements set out by Government.
Support for investigation into POME mislabelling
The CA supports a thorough investigation of any potential fraud in the supply of biofuel feedstocks. According to Department for Transport (DfT) figures, the mislabelling of palm oil as POME is potentially an even more significant problem for the FAME (Fatty Acid Methyl Ester) used in B7 diesel for road vehicles.
Although controls exist on the use of palm oil, the CA would also support a complete ban on all palm oil products in HVO production, including waste from processing.
Sustainability assurance
In the UK, requirements and criteria for sustainability of feedstocks are set in the well-established Renewable Transport Fuel Obligation (RTFO) scheme, administered by the Department for Transport (DfT), and in Europe by the EU Renewable Energy Directive (RED II).
Under the RTFO scheme, suppliers of relevant transport fuel in the UK must meet an annual obligation using tradeable Renewable Transport Fuel Certificates (RTFCs) which are awarded for the supply of sustainable renewable fuel. All applications for RTFCs must be independently verified and must demonstrate compliance with the RTFO sustainability criteria. They must also prove minimum GHG reduction of 65% over whole supply chain from ‘field to wheels’ or ‘wake’, including factors such as changes in land use.
UK Government-recognised accreditation schemes, which have a high uptake according to DfT annual reports, are available from a number of organisations. In Europe, ISCC (International Sustainability and Carbon Certification) and REDcert are the predominant schemes, with ISCC certifying 92% of all UK renewable fuel in 2023 according to DfT statistics.
What the data shows
The CA has referred to DfT data (provisional and historic) for the use of POME in the production of HVO. The 2024 provisional data shows 2.4% HVO was produced from POME, while the figures for 2022 and 2023 show 20% and 25% of HVO from POME.
The data also confirms that, over the last five years, all UK-supplied HVO has been produced from waste materials and that GHG savings for HVO in that period range from 83% to 91%.
Accountability and enforcement
The RTFO places a significant onus on fuel suppliers, so they have a strong incentive to avoid fraud. If the DfT find that there is fraud or misuse, the RTFO administrator can apply civil penalties on the supplier, up to 10% of the turnover derived from fuels covered by the RTFO.
The CA supports transparency, accountability and continuous monitoring for assurance that suppliers provide evidence that HVO is from sustainable feedstocks and that virgin oils are not being mis-sold as waste products. Under the RTFO, waste feedstocks, such as Used Cooking Oil (UCO), receive two RTFCs per litre to encourage use of waste over virgin crops.
HVO access and affordability
On behalf of its members, the CA campaigns to improve the accessibility and affordability of HVO. HVO is a safe and stable drop-in renewable diesel produced from vegetable oil and waste feedstocks, which is ideal as a transitional solution for existing recreational boats with diesel engines to reduce GHG emissions.
The role of sustainable HVO in the decarbonisation of the recreational boating sector is promoted by the CA as part of the HVO Joint Working Group, a collaboration involving the Inland Waterways Association, the Royal Yachting Association and British Marine.
The Group is working to raise awareness and change Government policies which are currently causing a barrier to the widespread supply and adoption of HVO in the sector. This includes the issue that seagoing recreational craft, unlike inland waterways vessels, are currently excluded from using biofuels supplied under the RTFO scheme.
For more information on the HVO Campaign visit www.theca.org.uk/hvo-for-boats.
16 April 2025