Eamon Ryan (Dublin Bay South, Green Party)
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HVO (Hydrotreated Vegetable Oil) is a drop-in bioliquid which can replace fossil diesel up to 100%, with GHG reduction benefits. When used in transport the HVO is referred to as biofuel. HVO bioliquid is also used as renewable energy for heating and power generators.

Supporting the supply of renewable energy in transport, the Renewable Transport Fuel Policy 2023-2025 sets out the pathway to the achievement of both Climate Action Plan targets and European obligations concerning sustainability and GHG reduction criteria.

Since 2010 the supply of renewable energy in transport consumption is incentivised through a national mandate, the renewable transport fuel obligation (RTFO), on fuel suppliers - which is currently set at a rate of 17% by energy of renewable transport fuel as a proportion of total road transport fossil fuel supply. HVO used in transport which fulfils EU criteria for sustainability and GHG reduction is eligible for RTFO certificates, which can be counted against the obligation.

Additionally, regulations were made in April 2023, authorising the NORA to issue additional RTFO certificates per megajoule of renewable transport fuel supply, to incentivise the supply of certain renewable transport fuels, for use in different transport sectors, including HVO and co-processed HVO.

The trajectory of annual RTFO rate increases to 2030 as set out in the policy is designed to achieve the Climate Action Plan target of an E10 (10% Ethanol) and B20 (20% Biodiesel equivalent) as a transitionary measure to support planned transport sector decarbonisation by 2030.

The Biofuel Study Report 2022 estimates that between 570-730m litres of biodiesel/HVO supply could be required to meet the Climate Action Plan biofuel target by 2030. The Study indicates potential to meet this estimated future supply through industry plans for scaled-up indigenous production of these biofuels. The study notes, however, the likely continued reliance on imported feedstock supply to support this level of estimated future production.

The National Oil Reserves Agency (NORA) which administers the RTFO has estimated a 0.2MT CO2eq tailpipe emission GHG saving in 2022 over 2018 figures, as a result of the RTFO.

The NORA Renewable Transport Fuel Annual Report 2022 set out that approximately 307m litres (9.6 PJ) of liquid biofuel was placed on the market. Of this amount, was approximately 256m litres of biodiesel (including HVO/CHVO), increased from 202m litres in 2021.