Top 10 Companies in the Hydrotreated Vegetable Oil (HVO) Market (2026): Market Leaders Powering Global Adoption

MARKET INSIGHTS

Global Hydrotreated Vegetable Oil (HVO) market size was valued at USD 19,450 million in 2024. The market is projected to grow from USD 21,830 million in 2025 to USD 51,190 million by 2032, exhibiting a CAGR of 12.3% during the forecast period.

Hydrotreated Vegetable Oil (HVO) is a renewable diesel alternative produced through hydrogenation of vegetable oils or animal fats. Unlike conventional biodiesel (FAME), HVO offers superior characteristics including higher cetane number (typically 70‑90), better cold weather performance (with cloud points as low as -40 °C), and complete compatibility with existing diesel engines without modification. The production process removes oxygen from feedstock through hydroprocessing, resulting in a hydrocarbon nearly identical to petroleum diesel.

The expansion follows tightening environmental regulations globally, particularly in Europe and North America where blending mandates are rising. In 2024, the EU’s revised Renewable Energy Directive (RED III) set a binding target of 42.5 % renewable energy in transport by 2030. Simultaneously, corporate sustainability commitments are creating strong demand, with major fleets such as Amazon and UPS adopting HVO to decarbonise logistics. However, feedstock availability remains a challenge, prompting innovation in waste and residue‑based production.

Hydrotreated Vegetable Oil (HVO) Market – View in Detailed Research Report

Top 10 Companies in the Hydrotreated Vegetable Oil (HVO) Market

🔟 1. Neste

Headquarters: Espoo, Finland
Key Offering: Renewable diesel, advanced biofuels, feedstock sourcing solutions

Neste has cemented its position as the world’s largest renewable diesel producer through an integrated portfolio that spans feedstock acquisition, hydroprocessing, and downstream distribution. The company’s NEXBTL process, a proprietary eco‑fining technology, delivers a drop‑in fuel that matches the performance of petroleum diesel while maintaining lower sulphur and particulate emissions.

Strategic initiatives include a €2 billion expansion of the Singapore refinery to boost capacity to 1.3 million tonnes per year and a partnership with the EU’s Horizon Europe programme to accelerate carbon‑neutral feedstock projects.

• Investment in waste‑to‑fuel technology, targeting a 30 % reduction in feedstock cost by 2028.
• Commitment to achieve net‑zero emissions across the supply chain by 2035.
• Collaboration with logistics operators to enable 15 % particulate emission reduction in heavy‑duty fleets.

9️⃣ 2. Diamond Green Diesel

Headquarters: New York, USA
Key Offering: Renewable diesel, co‑processing solutions, feedstock innovation

Diamond Green Diesel leverages a unique co‑processing model that blends HVO production with existing petroleum refining streams, reducing capital intensity and accelerating market entry. The company’s flagship facility in Wisconsin processes 1.5 million tonnes annually, supplying both domestic and export markets.

Key initiatives focus on expanding the use of used cooking oil and animal fats, and on establishing a regional logistics network to reduce supply chain lead times.

• Partnership with major food‑service providers to secure a steady stream of used cooking oil.
• Launch of a digital platform for real‑time feedstock tracking and quality assurance.
• Investment in carbon‑offset projects to enhance the sustainability profile of its fuels.

8️⃣ 3. UPM Biofuels

Headquarters: Helsinki, Finland
Key Offering: Renewable diesel, bio‑based feedstock solutions, advanced hydroprocessing

UPM Biofuels operates a state‑of‑the‑art refinery in Norrköping, producing 1.2 million tonnes of renewable diesel per year. The company’s strategy centres on sourcing lignocellulosic biomass and waste streams, thereby reducing dependence on edible oils.

Recent developments include a pilot plant that converts municipal solid waste to HVO with conversion efficiencies exceeding 85 %.

• Expansion of waste‑to‑fuel facilities in the Baltic region.
• Collaboration with EU research bodies to refine feedstock pretreatment processes.
• Commitment to achieving a 20 % reduction in greenhouse gas intensity by 2030.

7️⃣ 4. Renewable Energy Group

Headquarters: Houston, USA
Key Offering: Renewable diesel, co‑processing technologies, feedstock procurement

Renewable Energy Group’s strategic focus is on scaling up co‑processing operations across its North American network, targeting a combined capacity of 3 million tonnes by 2032. The company is also investing in a proprietary feedstock‑preprocessing platform to streamline logistics and reduce waste.

• Partnership with agricultural cooperatives to secure a steady supply of corn stover.
• Development of a digital traceability system for feedstock provenance.
• Initiatives to support small‑holder farmers through feedstock revenue sharing.

6️⃣ 5. TotalEnergies

Headquarters: Paris, France
Key Offering: Renewable diesel, integrated refinery solutions, marine fuel projects

TotalEnergies has accelerated its renewable diesel portfolio through the acquisition of a 500,000‑tonne HVO production line in La Mède, France. The company’s broader strategy includes a 30 % increase in renewable content across its global fuel mix by 2030.

• Investment in a marine‑fuel blending facility in Rotterdam.
• Collaboration with shipping lines to pilot 5 % HVO blends.
• Commitment to reducing lifecycle emissions by 25 % by 2028.

5️⃣ 6. Preem

Headquarters: Stockholm, Sweden
Key Offering: Renewable diesel, co‑processing technologies, feedstock diversification

Preem’s strategy focuses on expanding co‑processing capacity in its existing refineries, targeting a 20 % increase in renewable diesel output by 2030. The company is also investing in advanced feedstock pretreatment to enable higher utilisation of waste oils.

• Launch of a feedstock‑preprocessing hub in Gothenburg.
• Partnership with the Swedish government on a national low‑carbon fuel roadmap.
• Initiatives to secure long‑term contracts with food‑processing firms for used cooking oil.

4️⃣ 7. Repsol

Headquarters: Madrid, Spain
Key Offering: Renewable diesel, integrated bio‑refinery, marine fuel projects

Repsol is expanding its renewable diesel footprint through a new co‑processing unit in Cartagena, Spain, with a planned capacity of 1 million tonnes per year. The company is also exploring marine applications, targeting a 10 % blend in regional shipping routes.

• Investment in a feedstock‑preprocessing facility for palm‑based oils.
• Collaboration with European shipping associations to promote low‑carbon fuels.
• Commitment to achieving carbon‑neutral operations by 2035.

3️⃣ 8. Eni

Headquarters: Rome, Italy
Key Offering: Renewable diesel, co‑processing solutions, feedstock innovation

Eni’s strategy includes a partnership with the Italian Ministry of Environment to develop a national feedstock‑sourcing programme, aiming to secure 30 % of its renewable diesel feedstock from waste streams by 2030.

• Development of a digital platform for feedstock quality monitoring.
• Investment in a pilot plant for converting municipal waste to HVO.
• Initiatives to support local farmers through feedstock revenue sharing.

2️⃣ 9. Axens

Headquarters: Paris, France
Key Offering: Hydroprocessing equipment, technology licensing, co‑processing solutions

Axens supplies advanced hydroprocessing units to major refineries, enabling rapid scale‑up of HVO production. The company is also expanding its service portfolio to include feedstock pretreatment solutions.

• Launch of a technology licensing programme for co‑processing units.
• Partnership with research institutes to develop next‑generation feedstock pretreatment.
• Commitment to reducing equipment carbon footprint by 15 % by 2030.

1️⃣ 10. BP

Headquarters: London, United Kingdom
Key Offering: Renewable diesel, co‑processing solutions, marine fuel projects

BP’s renewable strategy includes the acquisition of a 1.5 million‑tonne HVO facility in the United Kingdom, with plans to integrate the unit into its existing refinery network. The company is also investing in marine‑fuel blending projects to support the UK’s shipping sector.

• Investment in a marine‑fuel blending hub in Southampton.
• Collaboration with UK shipping companies to pilot 5 % HVO blends.
• Commitment to reducing lifecycle emissions by 30 % by 2030.

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Outlook

The trajectory of the HVO market is shaped by a convergence of regulatory ambition, corporate decarbonisation targets, and technological progress in feedstock conversion. While the capital intensity of new plants and feedstock volatility present challenges, the sector is poised to benefit from a growing appetite for low‑carbon fuels across transportation, aviation, and marine segments.

Future Trends

Key developments to watch include the scaling of waste‑to‑fuel technologies, which are expected to broaden the feedstock base by 40 million tonnes annually, and the expanding role of HVO in sustainable aviation fuel blends, which could capture 35 % of new SAF capacity in the next five years. Additionally, the maritime industry’s adoption of HVO‑blended bunkers is projected to account for a quarter of overall growth through 2035, driven by IMO GHG strategy commitments.