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• Renewable diesel (RD), dubbed HVO (hydrotreated vegetable oil) by producers, is hailed by its supporters as a climate-friendly alternative to carbon-intensive fossil diesel. RD is a complex biofuel often made in retooled oil refineries from feedstocks including waste cooking oils, but also problematic animal fats and soy and palm oil.
• Renewable diesel substitutes easily for fossil diesel, so is touted as a climate-friendly transition fuel. Its use, mostly in vehicles, grew slowly in the past. Now, thanks largely to government-offered green subsidies, production is surging as firms widely expand uses to marine shipping, power plants, heating oil, and data center backup fuel.
• But critics are skeptical about industry claims of RD life-cycle greenhouse gas emission cuts of up to 95% over fossil fuel-derived diesel. They warn RD carbon releases will surge if renewable diesel sourcing is scaled up, triggering tropical deforestation as producers convert forests to energy crops, such as oil palm and soy.
• As the renewable diesel industry expands beyond Europe and the U.S., analysts warn it will be a false climate solution unworkable at scale, so production and use should be constrained. Independent monitoring is also needed to track feedstock supply chains to assure crops don’t have high carbon intensities or cause deforestation.