MARKET INSIGHTS
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Global Hydrotreated Vegetable Oil (HVO) market size was valued at USD 14.6 billion in 2024. The market is projected to grow from USD 17.2 billion in 2025 to USD 54.8 billion by 2032, exhibiting a CAGR of 15.6% during the forecast period.
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HVO, also known as Hydroprocessed Esters and Fatty Acids (HEFA), is a premium renewable diesel fuel produced through hydroprocessing of vegetable oils, animal fats, and waste oils. This advanced biofuel has near-identical chemical properties to conventional diesel, making it fully compatible with existing diesel engines and fuel infrastructure without requiring modifications.
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The market growth is driven by stringent environmental regulations mandating cleaner fuels, particularly in Europe and North America. The Renewable Energy Directive II (RED II) requiring 14% renewable energy in transport by 2030 and California’s Low Carbon Fuel Standard are key policy drivers. Additionally, major energy companies like Neste, TotalEnergies, and Chevron are investing heavily in production capacity expansions, with Neste recently announcing a new 1.3 million ton annual production facility in Rotterdam.
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HVO or HEFA Market – View in Detailed Research Report\n
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1️⃣ Neste
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Headquarters: Espoo, Finland
Key Offering: Renewable diesel (HVO) and Sustainable Aviation Fuel (SAF)
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Neste is the world’s leading producer of renewable diesel, supplying its proprietary HVO to commercial fleets, aviation, and industrial power systems. The company’s flagship 1.3 million ton Rotterdam refinery is a benchmark for large-scale HVO production.
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Sustainability Initiatives:
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- Committed to 100% renewable electricity for all refineries by 2030
- Carbon-neutral HVO production with net-zero carbon emissions target
- Partnerships with airlines for long-term SAF supply agreements
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2️⃣ TotalEnergies
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Headquarters: Paris, France
Key Offering: Renewable diesel (HVO), SAF, and advanced biofuel technologies
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TotalEnergies operates several HVO plants across Europe, targeting a 30% renewable diesel blend in its fuel portfolio by 2035. The company is also investing in co-processing technologies to integrate biogenic streams into conventional refineries.
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Sustainability Initiatives:
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- Goal of 30% renewable diesel in fleet fuel mix by 2035
- Investment in algae-based SAF production
- Carbon capture and storage projects integrated with HVO production
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3️⃣ Chevron
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Headquarters: San Ramon, California, USA
Key Offering: Renewable diesel (HVO), SAF, and petrochemical integration
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Chevron has acquired Renewable Energy Group to expand its renewable diesel portfolio. The company is building a 1.5 million ton HVO facility in Texas and is exploring co-processing with its existing refineries.
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Sustainability Initiatives:
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- Target of 100,000 b/d renewable diesel production by 2030
- Investment in green hydrogen for hydroprocessing
- Carbon intensity reduction of 40% in fuel supply chain by 2035
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4️⃣ BP (Air BP)
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Headquarters: London, United Kingdom
Key Offering: Renewable diesel (HVO), SAF, and aviation fuel services
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Air BP is a leading distributor of renewable diesel in the UK, supplying commercial fleets and aviation operators. The company is expanding its HVO capacity to meet the UK’s low-carbon fuel targets.
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Sustainability Initiatives:
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- Carbon-neutral fuel supply chain by 2030
- Investment in digital twin technology for refinery optimization
- Partnerships with airlines for 10-year SAF contracts
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5️⃣ Eni
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Headquarters: Rome, Italy
Key Offering: Renewable diesel (HVO) and biofuel research & development
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Eni operates HVO plants in Italy and is developing next-generation feedstock solutions such as lignocellulosic biomass. The company is also exploring marine biofuel applications.
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Sustainability Initiatives:
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- Target of 20% renewable diesel blend in 2026
- Investment in waste oil utilization programs
- Carbon intensity reduction of 30% by 2030
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6️⃣ Renewable Energy Group
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Headquarters: Houston, Texas, USA
Key Offering: Renewable diesel (HVO) and advanced biofuel technologies
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REGen, the brand of Renewable Energy Group, produces HVO from used cooking oil and animal fats. The company operates a 1.1 million ton plant in Texas and plans to expand to 2 million tons by 2030.
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Sustainability Initiatives:
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- Zero-waste feedstock sourcing strategy
- Carbon-neutral production by 2035
- Partnerships with municipalities for UCO collection
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7️⃣ Diamond Green Diesel
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Headquarters: Amsterdam, Netherlands
Key Offering: Renewable diesel (HVO) and SAF
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Diamond Green Diesel focuses on sustainable feedstocks such as used cooking oil, fish oil, and waste fats. The company’s 1.0 million ton Rotterdam refinery is a leading example of circular biofuel production.
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Sustainability Initiatives:
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- 100% circular feedstock sourcing
- Net-zero carbon emissions target by 2030
- Collaboration with shipping companies for marine biofuel
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8️⃣ UPM Biofuels
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Headquarters: Turku, Finland
Key Offering: Renewable diesel (HVO) and advanced biofuels
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UPM Biofuels operates HVO plants in Finland and Russia, producing fuel from rapeseed and waste oils. The company is also developing algae-based biofuels.
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Sustainability Initiatives:
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- Carbon-neutral production by 2035
- Investment in next-generation feedstock research
- Partnerships with EU biofuel initiatives
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9️⃣ ConocoPhillips
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Headquarters: Houston, Texas, USA
Key Offering: Renewable diesel (HVO) and petrochemical integration
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ConocoPhillips is expanding its renewable diesel portfolio through acquisitions and joint ventures. The company plans to add 1.5 million tons of HVO capacity by 2035.
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Sustainability Initiatives:
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- Carbon intensity reduction of 35% by 2035
- Investment in green hydrogen for hydroprocessing
- Long-term SAF supply agreements with airlines
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🔟 PetroBras
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Headquarters: São Paulo, Brazil
Key Offering: Renewable diesel (HVO) and biofuel research
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PetroBras is developing HVO production from soybean oil and waste fats to support Brazil’s biofuel strategy. The company aims to achieve 10% renewable diesel blend in 2026.
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Sustainability Initiatives:
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- Renewable diesel blend target of 10% by 2026
- Investment in feedstock sustainability certification
- Carbon intensity reduction of 25% by 2030
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Outlook
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The HVO/HEFA market is poised for rapid expansion as regulatory mandates, technological advancements, and sustainability commitments converge. By 2026, production capacity is expected to reach over 20 million tons, while 2034 projections indicate a market value approaching USD 70 billion.
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Future Trends
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Key trends shaping the HVO/HEFA landscape include:
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- Advanced feedstock technologies such as lignocellulosic biomass and algae oils
- Co-processing of biogenic streams in conventional refineries
- Digital twins and predictive analytics for plant optimization
- Expansion of SAF and marine biofuel applications
- Increased carbon pricing and credit markets to support economics
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