HVO Adoption in Brazil: Challenges and Environmental Implications

Hydrotreated Vegetable Oil (HVO) is one of the solutions for replacing fossil diesel with a clean and renewable fuel in compression ignition (CI) engines. This study focuses on the benefits of using HVO-fueled engines in Brazil concerning CO2 emissions, compared with other alternatives in the Brazilian energy matrix. The analysis includes CO2 emissions from the Brazilian diesel fleet over the last 10 years considering conventional diesel fuel, traditional biofuels, and the anticipated introduction of HVO into the Brazilian market. The proposal involves neat HVO as well as blends of fossil diesel, biodiesel, and HVO (up to 50% by vol.), these blends being more realistic for their practical deployment. Considering the Brazilian diesel fleet over the past 10 years (2015–2025), net CO2 emissions would have been reduced by 77.4% if 100% HVO had been used, while a reduction of 54.4% would have occurred with the blend containing 50% of HVO. Moreover, the use of 100% HVO for this fleet from 2015 would lead to 366.5 and 652.4 Mton of CO2 in 2030 and 2035, respectively, compared with 1621.5 and 2885.9 Mton if 100% fossil diesel is used. The economic analysis suggests that fuel cost savings of approximately 12 USD billion could be reached in 2035 under favorable HVO production scenarios. This is a favorable projection, with positive values for all blends and pure HVO, indicating economic feasibility.