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Spain is pioneering a major shift in sustainable fuel production by converting used cooking oil (UCO) into hydrotreated vegetable oil (HVO) — a high-quality renewable diesel that is fully compatible with all existing diesel vehicles and infrastructure without any modifications.
Unlike conventional biodiesel, HVO is a drop-in fuel that can be used in pure form or blended with petroleum diesel in any proportion, making it immediately deployable through existing fuel distribution networks without the infrastructure investment that other alternative fuels such as hydrogen or electricity require.
Several Spanish fuel producers have invested significantly in HVO production capacity over the past two years, driven by the European Union's Renewable Energy Directive targets and growing demand from transport companies and private consumers seeking to reduce their carbon footprints without transitioning to electric vehicles.
The Spanish approach prioritizes used cooking oil as the primary feedstock for HVO production, reflecting both the availability of UCO from Spain's extensive hospitality and food service sector and the lifecycle carbon emission advantages of using a waste-derived feedstock compared to virgin vegetable oils.
Industry analysts noted that the commercial success of UCO-based HVO production in Spain could serve as a model for other Mediterranean and European countries with large food service sectors, as it demonstrates a viable circular economy pathway for converting a widely available food waste stream into a high-value, low-carbon transport fuel.
The Spanish government has introduced regulatory measures to incentivize UCO collection and processing, including mandatory UCO recycling requirements for large-scale food service operators and tax advantages for certified renewable fuel producers.
