UK investigates claims of green fuel HVO diesel being tainted by fraud. Image: Fleet News.
(The Post News)– The UK government is looking into hydroreated vegetable oil (HVO) diesel, a rapidly expanding “green fuel,” following allegations of fraud. Supporters of HVO claim it can reduce carbon emissions by up to 90% since it’s derived from waste materials like used cooking oil, making it a popular choice for transportation and events like music festivals.
Industry whistleblowers have reported that these large amounts of these materials are not waste but rather virgin palm oil, a product that is relabelled fraudulently. An analysis of data by BBC, shared with the UK’s Department for Transport, raises additional concerns about one of the primary components of HVO: palm sludge waste.
Europe’s 2023 use of palm sludge waste in biofuels surpassed global production, sparking concerns over authenticity. The Department for Transport said in a response to the BBC’s findings that they take concerns raised seriously and they are working with stakeholders and international partners to gather more information.
In the recent years, HVO has been called something of a wonder-fuel due to its usage as 100% substitute for diesel reducing planet warming emissions. Based on the provisional government figures, UK consumption went from 8 million litres in 2019 to about 699 million litres in 2024.
Its environmental credibility hinges on the assumption that it’s primarily derived from waste materials, such as used cooking oil or waste sludge from oil production. Although industry whistleblowers reported that they believe virgin palm oil and other non-waste materials are often used instead.
A BBC review of data, in partnership with the campaign group Transport & Environment, reveals that Europe and the UK consumed approximately 2 million tonnes of palm sludge waste in 2023. This is nearly double the estimated global production of 1 million tonnes, suggesting that non-waste materials, including virgin palm oil, may be being mislabeled as waste to meet biofuel demand.
According to Dr. Christian Bickert, a German farmer and biofuels expert, distinguishing between virgin palm oil and sludge waste is challenging due to their chemical similarities. The discrepancy in figures implies potential fraud in the biofuel industry.
The waste-based biofuel industry’s credibility relies on ISCC certification, but weak oversight in countries like China and Indonesia raises concerns. Some companies, like Balfour Beatty, have banned HVO use due to supply chain transparency issues. The European Waste-based and Advanced Biofuels Association is calling for ISCC to strengthen oversight.
Irish regulators have reduced incentives for palm waste-based fuels amid growing scrutiny. The EU is considering a 2.5-year suspension of ISCC certification for waste biofuels, which could disrupt the market. The ISCC has expressed surprise and concern, defending its reputation as a leader in fraud prevention. The UK’s Department for Transport is investigating the claims, taking the concerns seriously and gathering more information.
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