What Is HVO, and Why Is BMW Testing It?
HVO stands for hydrotreated vegetable oil, although the name can be misleading. The fuel is not necessarily made from vegetable oil alone. Depending on the production process, it can be manufactured from renewable raw materials such as used cooking oil, animal fats and other suitable waste-derived oils.
Through a process involving hydrogen treatment, these materials are converted into hydrocarbons with properties similar to those of conventional diesel. The resulting fuel can be used in compatible diesel engines without the extensive vehicle modifications associated with some alternative powertrain technologies.
HVO100 refers to fuel containing 100% HVO, rather than a blend with conventional fossil diesel. It is covered by the EN 15940 fuel standard for paraffinic diesel.
The appeal is straightforward: instead of requiring drivers to replace their vehicles, renewable diesel offers a potential route to reducing the greenhouse gas emissions associated with operating compatible diesel engines.
However, renewable diesel is not automatically carbon-neutral. Its overall environmental performance depends on the raw materials used, how those materials are processed, the energy consumed during production and transportation, and the resulting lifecycle emissions.
Research published in the Journal of Cleaner Production in April 2026 examined HVO production at two Italian biorefineries. Its findings highlighted the potential for substantial lifecycle emissions reductions, while also demonstrating that the results vary according to the feedstock and production pathway.
That distinction matters. A fuel made from suitable waste materials can offer a different environmental outcome from one that depends on agricultural production with significant land-use consequences.
For BMW, the question is whether renewable diesel can become a practical addition to Europe’s wider decarbonisation strategy.
More Than 600 Vehicles Put to the Test
BMW Group and its partners launched the HVO test and demonstration fleet in October 2025 at Fleet Europe Days in Luxembourg.
The initiative was designed to examine whether vehicles could operate within a fleet category known as VEEF, or Vehicles Exclusively running on Eligible Fuels.
The objective extends beyond simply filling a tank with renewable diesel. Participating organisations need reliable evidence that vehicles are actually using the approved fuel.
To address that challenge, BMW developed a digital verification system that cross-references several sources of information.
The technology combines vehicle refuelling data with records from fleet operators’ payment systems. For part of the fleet, it also incorporates fuel-station information from Bosch’s Digital Fuel Twin.
Together, these systems help establish which fuel was dispensed during individual refuelling events.
The trial involved corporate vehicles operated by BMW Group in Germany, Bosch in Germany, Eni in Italy and Repsol in Spain.
According to BMW’s interim results, the system delivered the following findings over approximately 12 months:
– More than 600 vehicles: BMW and MINI diesel vehicles participated in the fleet.
– Over 5,500 refuelling events: The system recorded and verified fuel transactions.
– Approximately 235,000 litres: The participating vehicles refuelled with HVO.
– More than 80% HVO usage: Over four in five recorded refuelling events were verified as involving renewable diesel.
– Four-country operation: The project demonstrated the approach across participating fleets in Germany, Italy and Spain, with the broader initiative spanning four countries according to BMW’s statement.
The distinction between the number of refuelling events and the volume of fuel consumed is important. An 80% rate of HVO refuelling events does not necessarily mean that 80% of all fuel consumed across the fleet was HVO.
Nevertheless, the findings demonstrate that BMW’s digital verification approach can operate across a substantial real-world fleet, providing a foundation for more reliable tracking of renewable-fuel use.
BMW’s Senior Vice President of Powertrain Development, Dr Martin Kaufmann, said the results demonstrated the technical feasibility of the VEEF-only fleet concept.
The company also reported that the vehicles required no hardware modifications and that the project did not depend on new fuel-station infrastructure.
The Infrastructure Advantage: A Different Route to Lower Emissions
One of the biggest challenges in automotive decarbonisation is not necessarily developing new technology. It is making that technology practical, affordable and accessible at scale.
Electric vehicles require charging access, whether at home, at workplaces or through public networks. Hydrogen vehicles require suitable production and refuelling infrastructure. Both approaches involve investments that can take time to deliver across entire regions.
HVO offers a different proposition.
Where compatible fuel is available, motorists and fleet operators can use existing diesel vehicles and much of the established fuel-distribution infrastructure.
That could be particularly valuable for businesses operating delivery vehicles, company cars and other diesel-powered fleets. Replacing hundreds of vehicles involves purchasing costs, financing, depreciation and the practical challenges of changing an entire fleet.
Using a compatible renewable fuel may allow operators to pursue emissions reductions while retaining vehicles they already own.
BMW has already taken steps in this direction. Since January 2025, its diesel models produced in Germany have been filled with unblended HVO before delivery to dealerships. The company identifies Neste MY Renewable Diesel as the fuel used at its Dingolfing, Regensburg and Leipzig plants.
BMW cites a potential reduction of up to 90% in well-to-wheel COâ‚‚-equivalent emissions for that fuel compared with fossil diesel. This is a fuel-specific claim, not a demonstrated 90% reduction across the entire test fleet. Actual savings depend on the applicable comparison, production pathway and operating conditions.
For existing diesel owners, this is an important distinction. A renewable fuel may offer a way to reduce lifecycle emissions without purchasing another vehicle, but its availability and compatibility must be established before making the switch.
Drivers should check their vehicle manufacturer’s approved fuel specifications and use only fuel that meets the relevant requirements.
The Catch: Renewable Fuel Still Needs Renewable Resources
The results are encouraging, but the bigger question is whether HVO can be produced in sufficient quantities to make a meaningful difference across Europe’s transport sector.
Used cooking oil, animal fats and other suitable waste materials are not unlimited resources. As demand for renewable fuels increases, manufacturers must compete for feedstocks that are also needed by other industries.
Scaling production also requires processing facilities, transport networks and reliable systems for verifying the origin and sustainability of raw materials.
These challenges could affect both the availability and the price of renewable diesel.
The European Commission has also identified indirect land-use change as a potential concern associated with biofuel production. If demand for fuel feedstocks encourages agricultural expansion at the expense of forests or other high-carbon ecosystems, some of the anticipated climate benefits can be undermined.
This is why the term renewable should not be treated as a guarantee of sustainability.
A credible assessment must consider the entire fuel lifecycle, including the collection of raw materials, manufacturing, distribution and combustion.
There is also a question of cost. BMW’s trial was designed to demonstrate the technical feasibility of its fleet concept, not to establish that HVO is cheaper than conventional diesel. The interim report does not provide a comprehensive comparison of fuel prices, vehicle operating costs or savings for individual motorists.
For fleet managers, the commercial case will depend on local fuel prices, supply contracts, vehicle compatibility and the emissions reductions achieved.
For private drivers, the decision may be more complicated if renewable diesel carries a substantial price premium or is unavailable nearby.
BMW Is Not Abandoning Electrification
It would be a mistake to interpret BMW’s HVO initiative as a retreat from electric mobility.
The company presents renewable fuels as an additional option alongside electrification, particularly for vehicles with internal combustion engines that will remain in service for years to come.
This is a practical consideration. Even as electric vehicles expand their market share, the existing global vehicle fleet cannot be replaced overnight.
Renewable fuels could help address part of the emissions generated by vehicles already on the road, provided sufficient sustainable fuel is available and the lifecycle benefits are demonstrated.
BMW is also investigating renewable fuels for petrol engines.
Since July 2026, BMW Group, Toyota Motor Europe, Repsol and Bosch have been running a separate pilot project in Spain. Approximately 20 petrol-powered BMW, MINI and Toyota vehicles are operating in the Greater Madrid area using Nexa 95, with the objective of verifying fuel use under real-world conditions.
The petrol initiative applies the same broader principle: develop reliable ways to establish that vehicles are using eligible fuels rather than relying on unverified claims.
BMW has also expressed support for initiatives to approve E20 petrol across Europe. E20 contains up to 20% ethanol by volume, subject to the applicable fuel specification and vehicle compatibility.
The company sees higher renewable-component content in petrol as another potential route to reducing the emissions associated with existing and future combustion-engine vehicles.
What This Means for the Future of the Combustion Engine
The automotive debate often presents electrification and combustion engines as opposing sides of an unavoidable contest. BMW’s HVO trial points towards a more complicated picture.
Electric vehicles can eliminate tailpipe emissions during operation, although their overall environmental footprint depends on electricity generation, battery production and other lifecycle factors.
Renewable diesel does not eliminate tailpipe emissions. Instead, it offers the possibility of reducing greenhouse gas emissions across the fuel lifecycle, depending on how it is produced.
The two technologies therefore address the challenge differently.
For a driver purchasing a new car, an electric vehicle may be the right choice depending on budget, driving requirements, charging access and local conditions. For a business operating a large diesel fleet, renewable fuel could provide another option while the company plans its longer-term transition.
Neither solution removes the need to assess costs, infrastructure and environmental performance.
The important question is how much each approach can contribute, where it works best and whether it can be scaled responsibly.
BMW’s interim findings provide evidence that digital fuel verification can support the operation of a VEEF-only fleet under real-world conditions. The company has demonstrated that hundreds of vehicles can participate in a system that tracks renewable-diesel use without modifying their hardware.
That is a meaningful technical result.
But the next challenge is larger: establishing whether enough sustainable HVO can be produced, whether it can be supplied at competitive prices, and how much lifecycle emissions reduction it can deliver when used on a much broader scale.
The Verdict: A Useful Bridge, Not a Universal Solution
BMW Group’s HVO test fleet is an example of the automotive industry looking beyond the vehicle itself to examine the fuels that power it.
Its more than 5,500 recorded refuelling events demonstrate that the technology used to verify eligible fuel consumption can function across a sizeable fleet. The approximately 235,000 litres of HVO consumed also provide a real-world basis for evaluating the practical use of renewable diesel.
For Europe, where millions of diesel vehicles will remain in service, that approach deserves attention.
However, the strongest case for HVO will depend on more than technical compatibility. Sustainable feedstock supplies, lifecycle emissions, fuel prices and access to refuelling stations will determine how far the technology can go.
Renewable diesel is unlikely to replace electrification, nor does this trial prove that every diesel vehicle should switch fuels. What it offers is another potential tool for reducing transport emissions while existing vehicles remain on the road.
The future of mobility may not be decided by a single technology. It may depend on how effectively manufacturers combine electrification, renewable fuels and other lower-emission solutions to address different transport needs.
BMW’s latest results suggest that HVO could play a role in that transition. The next step is proving how far the model can scale.
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Meta description: BMW’s HVO trial recorded over 5,500 refuelling events across more than 600 vehicles, examining renewable diesel’s role in reducing transport emissions.
Tags: BMW Group, BMW, MINI, HVO, Renewable Diesel, Automotive Technology, Sustainable Fuels, Diesel Engines, Carbon Emissions, Electric Vehicles, Future of Mobility
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Primary source: “BMW Group’s official HVO test-fleet announcement” (https://www.press.bmwgroup.com/global/article/detail/T0462315EN/bmw-group-and-partners%E2%80%99-hvo-test-and-demo-fleet-reports-successful-interim-results?utm_source=chatgpt.com)
Additional research: “Neste’s explanation of HVO renewable diesel” (https://www.neste.com/products-and-innovation/neste-my-renewable-diesel/what-is-hvo?utm_source=chatgpt.com) and “the 2026 lifecycle study published in the Journal of Cleaner Production” (https://www.sciencedirect.com/science/article/pii/S0959652626005974?utm_source=chatgpt.com).
