Europe Hydrotreated Vegetable Oil Market Research Report: Forecast (2024-2030)

Market Definition

Hydrotreated vegetable oil (HVO) is a renewable diesel produced from different vegetable oils & fats containing fatty acids. This oil is low in carbon & is a sustainable fuel. As a result, several sectors like power generation & utility, and aviation are readily opting for this oil rather than conventional diesel or petrol.

Market Insights & Analysis: Europe Hydrotreated Vegetable Oil Market (2024-30):

The Europe Hydrotreated Vegetable Oil Market is estimated to grow at a CAGR of around 13.2% during the forecast period, i.e., 2024-30. The factors attributing to the growth in the demand for the HVO are the increasing adoption of these fuel types in several sectors like transportation, aviation & others and rising government initiatives intending to encourage the adoption of sustainable fuels rather than conventional diesel & petrol.

Several end-user industries, such as chemical, automotive, and others in European countries like Italy, Germany, etc., use heavy & medium commercial vehicles for their logistics & transportation purposes to carry raw materials & packaged goods within the country. As a result, fuel consumption is relatively higher for these vehicles, causing carbon emissions. Hence, the companies have laid down sustainability goals & are aligning their efforts to achieve carbon targets and increasingly adopting sustainable fuels, driving the European Hydrotreated Vegetable Oil Market.

Further, carbon emissions have also emerged as global issues, leading to climate change. Therefore, the governments of countries such as Italy, the UK, and others are increasingly laying out initiatives such as Net Zero 2050, Nation ActionPlan on Climate Change, etc., to promote the usage of sustainable transportation fuel, enhancing the requirement for HVO fuel in Europe.

In addition, Europe has an abundance of feedstock, such as vegetable oil, animal fat, etc., required to form the hydrotreated vegetable. This poses an opportunity for HVO manufacturers like Repsol, Neste, Eni, and others to set up their manufacturing units in European countries. Further, the increasing establishment of the companies would help mitigate the supply chain constraints & help make HVO more accessible to the individuals. Hence, the Hydrotreated Vegetable Oil Market in Europe would grow substantially in the forthcoming years.

Europe Hydrotreated Vegetable Oil Market Driver

Increasing Demand for HVO as a Transportation Fuel Amplifying Market Growth – Over the years, carbon emissions in European countries like the UK, Italy, France, etc., have substantially increased due to the rapid industrialization and soaring usage of passenger cars & commercial vehicles. According to European Statistics, in Q4 2022, the carbon emissions were around 938 million tons, an upsurge of about 10% compared to Q3 2022. These emissions resulted in climate changes & numerous health hazards.

As a result, the governments of countries like Italy, France, Spain, and others laid down initiatives including National Climate Change, Net Zero 2050, etc. Europe's commitment to addressing climate change & lowering greenhouse gas emissions has increased demand for renewable diesel fuels, driving the Europe HVO Market.

Europe Hydrotreated Vegetable Oil Market Opportunity

Surging Usage of HVO for Power Generation to Uplift Market Growth – European countries like the UK, Italy, France, Germany, and others depend upon the import of fossil fuels from other countries like Norway, the Netherlands, etc., due to the maturing oil fields, imposition of a ban on mining, and limited oil & gas reserves. These countries seek to import fossil fuels in large quantities for various purposes like power generation, transportation, etc. According to the European Commission, in 2022, the share of petroleum oil & natural gas in the overall commodities imports increased to 11% & 10.8%.

However, the rising geopolitical tension between countries like Russia & Ukraine led to uncertainty in trade activities between Russia & European countries & generated an energy crisis in the European countries. Therefore, to mitigate the reliance on the import of fossil fuel, the governments of the country like the UK, France, and others are encouraging the usage of renewable biofuel for power generation rather than conventional fossil fuel.

Moreover, the government is also aligning its efforts to generate electricity using clean energy. Therefore, the demand for hydrotreated vegetable oil would increase in the forthcoming years for power generation purposes.

Europe Hydrotreated Vegetable Oil Market Challenge

High Cost Associated of HVO as Compared to Fossil Diesel to Impede the HVO Demand – The initial cost of setting up the HVO manufacturing unit is significantly higher since these industries require specialized instruments, hydrogen supply systems, catalysts, and other reactors to produce HVOs. In addition, the maintenance costs of these equipment are also relatively higher. As a result, the manufacturers of the HVO offer the HVO at a marginally higher price to maintain the profitability of their business. The higher costs of the HVO limit the penetration of these bio-fuels in low-economy or middle-income groups, hindering the HVO market growth.

Furthermore, there are several alternatives of the HVOs in the market, like synthetic fuel, gas to liquid fuels, etc., which are comparatively available at low costs. According to Your NRG Ltd., a leading heating oil supplier in the UK, the price of the HVOs is approximately 10% higher than the conventional fossil fuel. Therefore, consumers tend to purchase alternatives or conventional fuels, which are low-priced, thus negatively impacting the European Hydrotreated Vegetable Oil Market.

Europe Hydrotreated Vegetable Oil Market (2024-30): Segmentation Analysis

The Europe Hydrotreated Vegetable Oil Market study of MarkNtel Advisors evaluates & highlights the major trends & influencing factors in each segment & includes predictions for the period 2024-2030 at the regional & national levels. In accordance to the analysis, the market has been further classified as:

Based on Type:

• Pure HVO
• Co-processed HVO

The pure segment accounts for the prominent share in the Europe HVO Market owing to the increasing inclination of the end-users towards pure HVO. These types of HVO are known for lesser environmental impacts since they have a lower carbon intensity profile than blended HVO, making it an appealing choice for satisfying stricter emissions reduction requirements. Pure HVO is considered a carbon-neutral fuel, depending on the feedstock used during its manufacturing & does not contain a blend of other fuels that could diminish its carbon advantages.

Therefore, consumers, businesses, and fleet operators are increasingly adopting cleaner & more sustainable fuels, i.e., pure HVO. Hence, the reduced emissions, more purity, and lesser environmental impacts of pure HVO are driving the growth of this segment & are expected to enhance the market share during 2024-30 as well.

Based on Country:

• Germany
• The UK
• France
• Italy
• Spain
• Sweden
• The Netherlands
• Finland
• Rest of Europe

The production of conventional fossil fuel in the UK has been declining for the past few years owing to the maturing oil fields & strict regulations regarding mining & fossil fuel extraction activities. The low domestic production of these fuels in the UK led to an increasing reliance on imports from other countries. However, challenges such as supply chain constraints, trade disagreements, and geopolitical tensions have hampered the supply of fossil fuels & led to energy insecurity within the country. As a result, the government of the UK has encouraged the production & adoption of biofuel to ensure energy security within the country.

In addition, the government of the UK is also laying down initiatives such as Net Zero 2050 and other plans to minimize carbon emissions. Owing to these initiatives, the demand for sustainable fuel, i.e., hydrotreated vegetable oil, is expected to witness growth in the forthcoming years.

Europe Hydrotreated Vegetable Oil Industry Recent Development:

• 2022: Eni announced to build a bio-refinery at its Livorno site in Italy to produce hydrotreated vegetable oil (HVO). The bio-refinery would consist of a pre-treatment plant, an eco-fining plant, and a hydrogen production plant.

Gain a Competitive Edge with Our Europe Hydrotreated Vegetable Oil Market Report

• Europe Hydrotreated Vegetable Oil Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
• This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
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