How Prema HVO helps our clients?

A one-stop-shop summary of what Prema HVO is and how it can help your organisation to significantly reduce greenhouse gas emissions, without compromising performance, in an environmentally and financially sustainable way.

Below is a quick, one-stop-shop summary of what Prema HVO is and how it can help your organisation to significantly reduce greenhouse gas emissions, without compromising performance, in an environmentally and financially sustainable way.

The explainers below are suitable for all colleagues within your organisation, including those in:

  • Finance
  • Operations
  • Energy
  • Sustainability/Environment
  • Director and board-level.

What is Prema HVO and Conventional Diesel?

 

HVO stands for Hydrotreated Vegetable Oil. ‘Hydrotreatment’ is a complex refinery process where hydrogen is used to remove oxygen from the oil and create molecules very similar to mineral diesel from crude oil (also known as ‘fossil diesel’). The lack of oxygen in HVO is very important, as will become clearer as you move through these explainers.

Despite the name, HVO can be made from a range of feedstocks, not just vegetable oil. Prema HVO is made entirely from 100% used cooking oil imported by a single supplier. This is important because the sustainability and greenhouse gas emissions of HVO depend largely on what it’s made from. HVO made from used cooking oil is the most sustainable and lowest-emission form of HVO available.

In contrast to HVO, conventional diesel used in the UK (EN590) is typically made up of 94% fossil diesel and 6% biodiesel (also known as ‘FAME’). The biodiesel is present because fuel producers in the UK are obligated to supply a proportion of their diesel from renewable sources.

The biodiesel content in conventional diesel is associated with a range of performance issues, some of which are explored further below. This is because biodiesel contains oxygen and is prone to water absorption and bacterial infection, 'Diesel bug'. HVO is not biodiesel and does not suffer from these problems.

 

Prema HVO helps to reduce greenhouse gas emissions by ~90%...

 

Prema HVO offers significantly lower greenhouse gas (GHG) emissions than conventional diesel across its full lifecycle. This is because the feedstock, used cooking oil, is made from 100% waste plant matter that pulled carbon from the atmosphere when it originally grew. The UK government therefore considers there to be no net change to carbon levels in the atmosphere through its use as a fuel.

Prema HVO provides our clients with an immediate, substantial and guaranteed greenhouse gas (GHG) emission saving of ~90% in comparison to Diesel that is reported with accuracy and confidence because it is certified to both International Sustainability and Carbon Certification (ISCC) criteria and the Renewable Fuels Assurance Scheme (RFAS) criteria. In turn, this enables clients to report clear and accurate greenhouse gas emission savings of ~90% in a straightforward way.
Please click on this link to a full explanation of the GHG emissions from Prema HVO.

 

…without compromising performance

 

Prema HVO is not a new fuel. It has been used as a 100% neat product for over ten years and is already approved for use by most Original Engine Manufacturers (OEMs). Please click on this link for further explanation of engine manufacturer approvals.

Because it does not contain oxygen, Prema HVO is very stable. It repels water far more efficiently than conventional diesel, is impervious to bacterial attack and can be stored for up to ten years. As explained earlier, conventional diesel contains biodiesel, which absorbs water and is therefore prone to bacterial infection, waxing, degradation, and filter blockages.

Prema HVO also outperforms the EN590 conventional diesel specification for cold weather performance, ignition quality and filterability. Despite being slightly lighter than conventional diesel, Prema HVO’s calorific value is very similar and therefore volumetric fuel consumption is largely the same. In real-world application, the performance issues associated with the biodiesel in conventional diesel can even lead to greater consumption in some cases. Please click on this link for further explanation of the consumption rate of HVO.

 

…in an environmentally sustainable way...

 

Prema HVO provides clients with a method of substantially reducing greenhouse gas emissions in an environmentally sustainable way, with the peace-of-mind there is no risk of greenwashing backlash, and the confidence you are doing the right thing for the environment.
Please click on this link to a full explanation of the steps involved within the Prema supply chain to guarantee that Prema HVO is environmentally sustainable – including the International Sustainability & Carbon Certification (ISCC) and Renewable Fuels Assurance Scheme (RFAS) protocol.

Prema HVO also burns more cleanly than conventional diesel. Emission levels for dangerous pollutants such as particular matter, carbon monoxide and hydrocarbons are considerably lower, meaning cleaner air for your workers, the local community and the environment at large.

For further information on the tailpipe emissions from Prema HVO, please click on this link.

 

and a financially sustainable way…

 

Switching to Prema HVO allows you to spread the cost of reducing greenhouse gas emissions while making an immediate and substantial impact. The unit cost is expected to be significantly higher than conventional diesel going forwards (click here should you like to learn more).

But, unlike other methods of reducing emissions such as upgrading to electric (click here to learn more) or hybrid equipment, there are no upfront capital costs involved. As a ready-to-go drop-in replacement for conventional diesel, no new equipment is required; you can simply carry on utilising existing assets and infrastructure.

In other words, Prema HVO increases operating expenditure (OPEX) in comparison to using conventional diesel, but there are zero capital expenditure (CAPEX) costs.

 

We get that, on the face of it, the differential in pence per litre cost vs Diesel and the resulting increase in operating expenditure may not work for your organisation but HVO can be utilised as a method to reduce GHG emissions in a cost controlled and measured way using the methods below.

  • deploy volumes of HVO rather than Diesel as a you see fit - it is interchangeable,
  • HVO:Diesel blends (please click here to learn more),
  • HVO:Diesel blends - coupled with a cap on the amount you spend,
  • price-risk management measures - fixed-rate / index-linked pricing.
Our team would be happy to discuss these methods with you in more detail. 
 
We can work with you to use HVO to reduce emissions in a financially sustainable way.

 

If you have any further questions about Prema HVO, please get in touch and we will be delighted to help.