90% LESS CO2 EMISSIONS WITH HVO

• HVO is a biodiesel made from waste materials with as much as 89% less CO2 emissions, 30% less particulate matter and 9% less nitrogen oxide compared to 'fossil' diesel.
• Virtually any modern truck can run on HVO without modifications to the diesel engine.
• Maes Energy & Mobility is opening two HVO filling stations, in Londerzeel and Puurs.
• Today, the price is a limiting factor for those who drive many kilometres, but it is expected to go down.
• Pioneer Gert Snel (Snel Logistic Solutions): "Twenty per cent of our trucks are already running on HVO".
• Bert Vandecaveye (Tailormade): "In urban distribution, more and more customers are willing to pay a bit more for environmentally friendly transport".
• Luk Renmans (Duvel Moortgat): "We are considering using electric trucks, but with HVO we can already drive almost emission-free".
• Bornem municipality is going full steam ahead with HVO and wants to send a signal to local SMEs.

The Green Deal will require the transport sector to radically reduce its CO2 emissions. Usually, people think of the electric trucks to achieve that goal. Yet a solution is already available: biodiesel HVO, which is made from waste products. This reduces CO2 emissions by almost 90% compared to 'fossil' diesel. Some companies are already deploying HVO. Bornem municipality has also opted for it. The only limiting factor today is the price, which is significantly higher than that of fossil diesel. But this is expected to change.

Hydrotreated Vegetable Oil (HVO) is a second-generation biodiesel: it is made from waste products and fats from the food industry (i.e. not from food crops such as rapeseed or palm oil). It is the most sustainable fuel for diesel vehicles on the market today, with as much as 89% less CO2 emissions, 30% less particulate matter and 9% less nitrogen oxide compared to regular diesel.

A key advantage of HVO is that it is a so-called drop-in product. "you can fuel almost any modern truck with HVO, without any modifications to the diesel engine. An additional advantage: maintenance intervals remain unchanged. HVO can be used pure or in a mixture with fossil diesel. If the truck runs empty, ordinary diesel can be fueled. In fact, most truck manufacturers have already approved the use of HVO in their diesel engines," says Michiel Kuijs, managing director of DAF Trucks Belgium/Luxembourg.

"Offering HVO in our filling stations is a way for us to contribute to the transition to fossil-free mobility and to meet our customers' demand for environmentally friendly fuels. With HVO, the biggest pollution problems have already been solved. This gives the diesel engine a new future," states Dirk Maes, CEO of Maes Energy & Mobility. This fuel distributor recently opened two HVO filling stations, in Londerzeel and Puurs.

Increasing interest

"Maes Energy & Mobility was already supplying bulk HVO to a few carriers such as Snel Logistic Solutions from Deinze and Tailormade logistics from Ghent (see below). We are seeing increasing interest in this fuel among hauliers partly because more and more customers expect them to reduce their CO2 emissions. Natural gas - CNG and LNG - allows for rather small reductions in emissions and is an expensive technology. The supply of electric trucks is still scarce for now and they have major weight and range limitations. With HVO, they can meet their environmental targets without investing in technology," adds business development manager Hans Van Dam.

"Now we offer HVO at our two truck filling stations in Londerzeel and Puurs. As demand increases, we will also offer this biodiesel in 15 of our other filling stations. This growth might be faster than expected: 'last mile' service providers, among others, are interested in using HVO in their vans and light trucks," Hans Van Dam adds.

Prices are going to fall

The biggest limiting factor of a wider switch from fossil diesel to HVO is the price. "HVO is 70% more expensive than diesel in Belgium today. There are three main reasons for this: making biodiesel from waste materials is currently more expensive than from crude oil; There is only one producer in Northwest Europe, so there is virtually no competition; and - unlike in the Netherlands, for example - there are no fiscal support measures in our country. But we expect the prices to fall. As demand increases, more and more oil companies are showing interest. Production will increase and competition will grow," says Hans Van Dam. Fiscal incentive According to Dirk Maes, Belgium could adjust taxation on fuels to encourage HVO. "That would help our country meet its climate targets. I don't see the government reducing excise duties because there would be less revenue. I understand that. That is why we are formulating a proposal to promote HVO in a budget-neutral way, through the so-called 'professional diesel'. Today, hauliers are being reimbursed part of the excise duty. A formula could be worked out where the refund is reduced for fossil diesel and increased for HVO. With such a formula, it is a zero operation for the state but a big improvement for the climate and the environment," he says.

"If the price difference is no longer 70 per cent but 20 or 30 per cent, the ball will start rolling quickly," adds Hans Van Dam.

Despite the price handicap, some companies are already switching to HVO out of environmental awareness.

Snel Logistic Solutions

The HVO pioneer in Belgium is Snel Logistic Solutions from Deinze. The company started this back in 2018 and already has 400,000 litres on the counter. "As hauliers, we owe it to ourselves to work more sustainably. HVO is the ideal way to bring down CO2 emissions from transport. Much more convenient than gas and electricity," says managing director Gert Snel. "Almost 20% of our fleet now runs on HVO, admittedly from our branch in Weert, the Netherlands, where we refuel HVO from a home-based filling station. In the Netherlands, there are more filling stations offering HVO. In Belgium, there are far fewer for the time being, so the detour costs have an inhibiting effect. The fact that Maes now has HVO available in Puurs and Londerzeel immediately opens up prospects for our company. Soon Snel trucks will also be running on HVO in Belgium".

According to Gert Snel, it is difficult to pass on the entire price difference to customers. "By organising the transports differently and better, this can already be  eliminated in part. But it is mainly a matter of 'mindset': by combining ecological maximisation with economic maximisation, you can make your company future-proof. That in turn has advantages: you attract better people and ultimately it yields better contracts."

Tailormade Logistics

Ghent-based Tailormade Logistics has been using HVO for much of its transport for about a year. The company even invested in its own HVO filling stations in Ghent and Ghlin (near Mons). "Fifty of our four hundred trucks run with HVO today. This is much more than expected: many customers were initially hesitant to join us in our HVO adventure - the corona crisis made them more cautious - but today I notice that their environmental awareness is growing. Sustainability is receiving more and more attention," says managing director Bert Vandecaveye.In the current circumstances he sees particular applications in urban distribution. "Although the price of HVO has dropped by 30 per cent in one year, there is still a considerable surcharge over diesel in Belgium. In city distribution and local transport, the share of fuel in the total cost price is proportionally small. So it is easier to find distribution customers who are willing to pay a bit more for environmentally friendly transport than in international transport. For that activity, the cost of fuel weighs a more significant part of the total cost," he judges.

Duvel Moortgat

Duvel Logistics, the logistics arm within brewery Duvel Moortgat, has also switched to HVO. "Since the opening of Maes' HVO filling station in Londerzeel, our six distribution trucks fill up with HVO there. Our four 'older' trucks also run with HVO," says logistics manager Luk Renmans. "Duvel Moortgat is taking significant efforts in terms of the environment and CO2 emissions. For instance, we also deploy inland shipping and avoid empty or incompletely loaded driving as much as possible. We are considering deploying electric trucks, but HVO offers us the possibility to switch quickly. This allows me to drive environmentally friendly without having to invest in technology," says Luk Renmans. Distrilog, Van Dievel and Roefs Several other companies are seizing the opportunity offered by the opening by Maes of the HVO filling stations in Puurs and Londerzeel to drive with this biodiesel. For instance, Distrilog (distribution), Van Dievel (transport) and Roefs Group (industrial cleaning) are now also betting on HVO. The latter company uses, among others, the 'Lean & Green' philosophy and the CO2 performance ladder to give substance to sustainable entrepreneurship. "One such initiative is using HVO as fuel for our vehicles. And the nice thing is, there is now a filling station right on our doorstep in Puurs," the company states.

Distrilog, Van Dievel and Roefs

Several other companies are seizing the opportunity offered by Maes opening HVO filling stations in Puurs and Londerzeel to drive with this biodiesel. For instance, Distrilog (distribution), Van Dievel (transport) and Roefs Group (industrial cleaning) are now also betting on HVO. The latter company uses, among others, the 'Lean & Green' philosophy and the CO2 performance ladder to give substance to sustainable entrepreneurship. "One such initiative is using HVO as fuel for our vehicles. And the nice thing is, there is now a filling station right on our doorstep in Puurs," the company states.

Bornem municipality

Not just companies are making the move. The Bornem municipality also recently decided to go full steam ahead with HVO. Nicole Van Praet, alderman for the environment (IedereenBornem): "Our newest DAF truck will run purely on HVO. For this, we are installing a tank on the technical department's premises. We are also looking at whether our older trucks qualify, if necessary in a 'blend' with traditional diesel. But we are going for it: with this solution, we drastically reduce CO2 emissions. The fact that HVO is produced from waste makes this fuel even more attractive, as it completes the circle," she says. "Although Bornem is a vast municipality, our trucks drive few kilometres. The additional price then plays a smaller role. We have calculated that the fuel bill is barely €1,250 higher per year. If that drastically reduces CO2 and particulate matter emissions, it is a small price to pay for a better climate and healthier air."

Stefaan De Landtsheer, alderman for Local Economy (IedereenBornem) joins her: "With this decision, the Bornem municipality is sending a clear signal. I therefore hope that low-mileage SMEs will do the same exercise. Without having to invest in technology, they can already achieve almost the same environmental effect as with an electric truck. I therefore hope that Maes will soon also offer HVO at its petrol station in Bornem, so that they can follow our example."

Best alternative to diesel

All users agree that from technological point of view HVO is a 100% reliable alternative to diesel. "It is a fantastic product. No truck has ever had a problem with HVO. Fuel consumption is even slightly lower," says Gert Snel. "As long as electric driving is not yet affordable and hydrogen fuel cells remain futuristic, HVO is the ideal way to reconcile ecology and economy," adds Bert Vandecaveye.

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