Amid a growing trend in the logistics sector to switch to alternative fuels, Österreichische Post AG and Michelin have converted their fleets to hydrotreated vegetable oils (HVO), joining Tesco Ireland and Walkers in using renewable fuels to reduce carbon emissions.
The Austrian Postal Service has successfully converted its entire fleet of trucks from diesel fuel to hydro-treated vegetable oils (HVO), the company has announced.
HVO, a renewable fuel derived from waste, fats, vegetable residues, and oils, offers up to a 90% reduction in CO2 emissions over its lifecycle compared to fossil diesel, according to the manufacturer.
“With HVO, we can already massively reduce our emissions today. With an annual consumption of around six million litres of diesel, we save several thousand tons of CO2 by switching . We see HVO as a bridging technology that we will use to reduce our emissions until alternative truck drives such as hydrogen or e-fuels are ready for the market and economical,” says Peter Umundum, Board Member for Parcel & Logistics, Österreichische Post AG
The fleet, consisting of Iveco, MAN and Volvo vehicles, operates daily on postal routes across Austria, transporting parcels, letters, brochures, newspapers and magazines.
The conversion involves sourcing HVO from partners such as Eni, MMM, OMV and Turmöl, ensuring compliance with the EU’s Renewable Energy Directive (RED II) to avoid negative impacts on food production, the environment or social sustainability.
Michelin’s HVO switch aims for 30% CO2 reduction In a parallel effort, Michelin is set to achieve a 30% reduction in CO2 emissions from its Stoke-on-Trent-based logistics fleet by the end of the year by switching to HVO.
The company has secured 400,000 litres of HVO to replace diesel, projected to save 1,024 tonnes of CO2 annually.
“We held think tanks to explore ways to reduce CO2 emissions, and HVO emerged as the best option. Its immediate availability and ability to be used as a drop-in fuel made it an easy decision. Every 35,000-litre delivery of HVO reduces our fleet’s annual CO2 emissions by 2.62 per cent, helping us reach our 30 per cent target by year-end,” said John Howe, Managing Director of Michelin Tyre plc.
The fuel will power 50 HGVs operated by Great Bear, a division of Culina Group, covering 3.4 million miles annually to deliver tyres from Michelin’s European Distribution Centre and Remix factory to distribution hubs nationwide.
Additionally, the Stoke site will use HVO for terminal tractors and a dedicated fire appliance, complementing Michelin’s electric vehicle transition programme aimed at electrifying its Services and Solutions division’s van fleet by 2026.
Michelin’s commitment to sustainability aligns with its broader goal to achieve net-zero emissions by 2050, with an interim target of a 50% CO2 reduction by 2030 compared to 2010 levels.
Alternative fuel conversions at Tesco Ireland and Stobart for Walker These initiatives by Österreichische Post and Michelin are part of a broader trend within the logistics sector to adopt renewable fuels and reduce carbon footprints. For instance, Tesco Ireland has recently introduced 50 biomethane-fuelled HGVs, replacing an equal number of diesel trucks. Operated by DHL Supply Chain, these lorries are expected to cut tailpipe carbon emissions by up to 90%.
The biomethane is sourced from Irish and European anaerobic digestion plants, and the fleet refuels at the BioCNG station in Dublin.
These trucks, with a range of 700 kilometres on a full tank, will service Tesco’s 177 stores across Ireland, enhancing the environmental sustainability of its distribution network.
In a similar effort, British crisp manufacturer Walkers has switched to HVO for its delivery trucks through a collaboration with Stobart and PepsiCo, Walkers’ parent company. This switch is projected to save an additional 13,000 tonnes of greenhouse gas (GHG) emissions by the end of 2024.
HVO, processed from used cooking oil, produces 85% less GHG emissions per kilometre compared to conventional diesel.
Five million litres of HVO will fuel trucks travelling over 11 million miles this year, transporting Walkers Crisps from PepsiCo’s Leicester site to retailers across the UK.
This initiative builds on previous efforts by PepsiCo to integrate HVO into its supply chain, including routes between the Quaker Oats Mill in Cupar, Scotland, and Walkers’ Leicester factory, as well as journeys between British farms and Leicester. Currently, 40% of Walkers’ transportation relies on low-carbon HVO fuel, with PepsiCo’s total mileage using HVO this year estimated at 14 million miles, resulting in over 16,000 tonnes of avoided GHG emissions.
