Assessment of the Availability of Hydrotreated Vegetable Oil of the Irish Heavy Good Freight Sector

In 2024 the Department of Transport commissioned a report to assess the potential role of Hydrotreated Vegetable Oil (HVO) as a transitional fuel for decarbonising Ireland’s Heavy Goods Vehicle (HGV) sector, in line with the objectives of Ireland’s Road Haulage Strategy 2022–2031.

While full electrification remains the preferred pathway to zero emission for the sector, the analysis carried out by Indecon International Economic and Strategic Consultants on behalf of the Department, explores whether increased HVO use can offer substantial emissions reductions in the medium term and what policy instruments could support this shift without undermining longer-term goals.

The report indicates that, without accompanying reform of the Renewable Transport Fuel Obligation, increasing the use of HVO in the HGV sector will shift biofuel use away from other road users, thereby resulting in modest reductions in overall emissions compared to the baseline.

Additionally, the study forecasts that a subsidy to equalise the price of HVO with diesel in the year 2030 would cost the Exchequer €502m. This is a single year cost with additional costs incurred if the subsidy was provided for more than one year.