How biofuels are transforming UK logistics

Your Friday fish and chips could soon be powering both the ship that brings goods to UK ports and the lorry that delivers your next order. And yes, we’re being serious.

The UK logistics industry is in the middle of a quiet revolution, with biofuels becoming a genuine alternative to traditional fossil fuels across both sea and road transport. But this isn’t about distant promises or future technology – it’s happening right now, with real vessels and vehicles using real fuel made from waste products we’d otherwise throw away.

Biofuels at sea: the maritime opportunity

While shipping innovations like wind and ammonia power capture headlines, biofuels offer a more immediate solution for reducing maritime emissions. Ships can run on biodiesel blends today, using existing engines with minimal modifications.

The maritime industry is particularly interesting because of the scale involved. A single container ship burns massive amounts of fuel, making even small percentage improvements significant for global emissions. Some shipping lines are beginning pilot programmes with biofuel blends, particularly on shorter European routes where the economics work better than on long-haul Asia services.

For UK businesses importing from Europe, this creates new opportunities. Some carriers are beginning to offer “green shipping” services where customers can pay a premium for verified sustainable fuel usage. While you might not be able to specify which fuel your container ship uses on every voyage today, the industry is moving towards offering these lower-carbon shipping options.

The challenge is availability and cost. Marine biofuels are more expensive than traditional bunker fuel, and supply is still limited. But the trajectory is clear – major shipping lines are investing in biofuel capabilities as regulations tighten and customer demand grows.

The road transport revolution

While electric vehicles dominate the headlines for cars and vans, the heavy goods vehicles that move most of our freight face different challenges. Batteries powerful enough for long-haul trucking are still prohibitively heavy and expensive. Enter biofuels – and specifically HVO (Hydrotreated Vegetable Oil) – as a practical solution that’s available today.

CEVA Logistics, one of the UK’s leading low carbon logistics providers, now has approximately 200 HVO vehicles in operation, with plans to reach 450 by the end of 2025. Since 2021, they’ve used more than 11 million litres of HVO in the UK– cutting CO2e emissions by more than 25,000 tons.

And they’re not alone. DPD switched all their diesel HGVs to renewable biofuel by the end of 2023, showing that major logistics companies are making the switch now, not waiting for future alternatives.

The science bit (without the jargon)

HVO fuel is made from recycled cooking oils, is ISCC certified, doesn’t contain palm oil and delivers approximately a 90 percent reduction in CO2e emissions from Well to Wheel.

But HVO isn’t the only option. The biofuel family includes:

• Biodiesel (FAME) – Made from vegetable oils and animal fats through a chemical process 
• HVO (Hydrotreated Vegetable Oil) – Made from similar feedstocks but using a different process that creates a fuel more similar to diesel
• Bioethanol – Made from crops like sugarcane or corn, typically blended with petrol

HVO represented 22% of biodiesels consumed globally in 2022 (compared with 16% in 2021), showing strong growth in this sector.

The beauty of HVO is that it can be filled into the tank and used just like diesel fuel, with no need for costly upgrades to machinery.

Where the fuel actually comes from

This is where it gets interesting. The best biofuels aren’t competing with food crops – they’re made from waste products:

• Used cooking oil from restaurants and food manufacturers
• Agricultural waste like wheat straw and corn stalks
• Animal fats from meat processing
• Municipal solid waste – Advanced biofuels using municipal waste are still in pilot or early commercial stages

Olleco is the largest collector of used cooking oil in the UK and operates biofuel production plants, including a biodiesel plant in Liverpool. They’re turning what would otherwise be waste into fuel that can power transport.

The real-world performance

Independent testing shows impressive results. Compared to standard diesel emissions, Gd+ HVO has up to an 85% reduction in particulates, and up to a 30% reduction in Nitrogen Oxides, which means reduced climate impact and better local air quality.

So far in 2025, CEVA has reduced CO2e emissions by 2,742 tons in the UK thanks to the use of more than one million litres of HVO. These aren’t projections – they’re real reductions, based on actual fuel use and verified data from logistics providers.

The challenges we can’t ignore

Biofuels aren’t a magic solution without trade-offs:

Cost: HVO is more expensive to produce than biodiesel and pays full fuel duty (57.95 pence per litre) and VAT at 20%. This makes it pricier than conventional diesel.

Availability: There is no UK manufacture of HVO, although facilities are planned. Most UK biofuel is currently imported, which brings its own logistical and cost challenges.

Feedstock limitations: There’s only so much used cooking oil and agricultural waste available. The UK saw a drop in imported renewable diesel made from UCO – from 375 million to 158 million litres – highlighting pressure on feedstock supply.

Sustainability questions: Not all biofuels are created equal. Palm oil-based fuels, for example, can have questionable environmental credentials.

What this means for your business

If you’re shipping goods regularly, biofuels might already be part of your supply chain without you knowing it. Many logistics companies are quietly incorporating them into their operations as part of broader sustainability commitments.

The advantages for businesses include:

• Immediate emissions reduction without waiting for new vehicle or vessel technology
• No operational changes – biofuels work in existing diesel engines and ship engines
• Regulatory compliance help as emissions standards tighten
• Brand benefits from demonstrating environmental commitment

Looking ahead: growth and challenges

The global biofuels market could increase by 23% over the next 5 years, reaching 160 Mt by 2028, with HVO and ethanol accounting for two-thirds of this growth.

But success will depend on several factors:

• Scaling up sustainable feedstock supply
• Developing UK production capabilities
• Managing costs as demand increases
• Ensuring genuine sustainability benefits

CEVA’s investment in biofuel infrastructure at 18 key locations establishes a nationwide sustainable logistics network, showing how the infrastructure is gradually being built out.

The logistics industry perspective

Progressive logistics companies see biofuels as part of a broader transition towards sustainable transport. They’re not the final destination, but they’re a practical step that can be taken right now while other technologies develop.

So where does this leave your logistics strategy? Many forward-thinking companies are exploring partnerships with carriers who use biofuels where available, though it’s worth noting that freight forwarders typically work with multiple transport partners and don’t always control fuel choices. The focus is often on supporting the transition through carbon management reporting so clients can see the real impact of their shipping decisions. Because that’s what this is really about – making real progress now rather than waiting for perfect solutions later.

The biofuel revolution isn’t happening in some distant future – it’s happening now in logistics parks, on motorways, and in shipping lanes across the UK. Major companies are making the switch, infrastructure is being built, and real emissions reductions are being measured.

It’s not perfect, and it won’t solve everything. But it’s a practical, available solution that’s reducing transport emissions today while we work towards longer-term alternatives.

Your fish and chips waste might not save the world, but it could help power a cleaner transport system. And in logistics, practical progress is always better than perfect plans.

Want to understand how biofuels could be part of your sustainability strategy? Speak to our team about carbon management and sustainable transport options available in the market.