(Greenea) Overcapacity, shortage of sustainable feedstock, blending wall… they all contribute to the increasingly challenging situation on the biodiesel market in Europe. At the same time, new HVO investments start to pop up like mushrooms after a rain. But can this be the golden mean to what is happening in the biodiesel sector right now? Is HVO really the Holy Grail of the industry?
HVO, which is marketed by Neste Oil as “the highest quality diesel in the world,” stands for Hydrotreated Vegetable Oil: renewable diesel produced in the process of hydrogenation, i.e. treatment with hydrogen. As compared to regular biodiesel production by esterification, the HVO process, to put it simply, uses hydrogen and not methanol as the “catalyst.” As a result, it is not glycerin but propane that is the byproduct of hydrogenation. Another important difference between the two processes is the fact that hydrogenation removes all oxygen from the vegetable oils while esterification does not. It gives an advantage to the HVO production as it helps to avoid oxidation.
The main product of the HVO process is the, so called, Green Diesel. It has to be noted, though, that the HVO plant is a type of biorefinery and thus allows for production of a wide range of products from biofuels to biochemicals. Except for Green Diesel, the HVO installation can be used to produce Green Jet Fuel while Green Naptha and Green GPL, together with propane, are the by-products of the production process.
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Fossil oil refineries in Europe are facing overcapacity and liquidity issues which limit the profitability of the plants. Conversion to HVO allows them to become profitable and compete more successfully on the market. At the same time conversion of no-longerprofitable plants into HVO units saves thousands of workplaces by preventing closures. It results in an improved social image of these companies and gives them some political advantage.
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The byproducts are much more valuable than low quality glycerin produced in the esterification process. Propane, LP or Naphtha can all be sold at higher prices mitigating, thus, the operating costs.
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Although the range of feedstock used is wide, there is a long list of parameters that need to be tested. These include a detailed analysis of metals, polymers, chloride content, etc. Otherwise, there is a big risk of damages to the plant.
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At the same time, HVO, due to its excellent CFPP levels, can contribute to the development of the Green Jet Fuel use on a commercial scale. Several tests have already been successfully carried out with the ratio of 50-50 with regular jet fuel. READ MORE