UK Probing Claims Green Fuel Contains Virgin Palm Oil

The UK government is investigating a fast-growing “green fuel” called Hydrotreated Vegetable Oil (HVO) diesel after claims of large-scale fraud surfaced, Matt McGrath and Mark Poynting reported for BBC News.

Doubt has been cast on a key ingredient in HVO: palm sludge waste.

HVO diesel has become popular as a transportation fuel and for powering music festivals. Supporters say HVO can reduce carbon emissions by up to 90% because it can be made from waste materials like used cooking oil.

However, industry whistleblowers told the BBC they believe large volumes of HVO are being made not from waste, but from virgin palm oil that is being fraudulently relabeled.

Data analyzed by the BBC and shared with the UK’s Department for Transport casts further doubt on a key ingredient in HVO: palm sludge waste. The data suggests Europe used more of this material in 2023 than could plausibly be produced globally.

The Department for Transport said it “takes the concerns raised seriously and is working with stakeholders and international partners to gather further information.”

HVO has been dubbed a “wonder fuel” in recent years due to claims that it can fully replace diesel while dramatically cutting planet-warming emissions.

UK consumption of HVO skyrocketed from 8 million liters in 2019 to about 699 million liters in 2024, according to provisional government figures. But the fuel’s green credentials rest on the assumption it is produced from waste, particularly used cooking oil or waste sludge from palm oil production.

Whistleblowers allege that virgin palm oil and other non-waste materials are being substituted instead—a serious problem, as virgin palm oil is tied to tropical deforestation, contributing to climate change and threatening endangered species like orangutans, whose habitats are increasingly destroyed for plantation development.