30 April 2021

Therefore, the Government must support HVO as it is the best current option for boats on the inland waterways. 

We believe HVO provides an immediate solution for the majority of diesel-powered craft registered on the inland waterways. This is based on research carried out by members of IWA’s Sustainable Boating Group and wider commercial operators.

As a drop-in alternative to mineral diesel, HVO is more than 90% carbon neutral with many other benefits. Most importantly, it is available now. Potential uptake is only sluggish due to its availability, as well as greater production costs and therefore price at the pump.  

One of the current barriers to the commercial use of alternative fuels is that fossil fuel prices do not fully reflect the environmental costs that result from their use. Examples of this are the costs of climate change and pollutant impacts. This reduces the perceived cost-effectiveness of alternative fuels, leading to under-investment in related technologies and systems.  

The Government needs to support HVO until fuels made from renewable sources (other than biomass) are readily available, at an acceptable price and are free of any diesel engine operating issues. 

We have responded to the Government’s ‘Targeting net zero – Next steps for the Renewable Transport Fuels Obligation’ consultation.