Is HVO this the fuel of the future?

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Hydrogenated vegetable oil is making its way into the market due to its numerous properties and is one of the paths towards the energy transition.

Electricity is by no means the main form of energy used, nor is it easy to bring electrification to all sectors, and although it is true that the advance of renewable sources is remarkable, these days 80% of the world’s primary energy demand is still based on fossil fuels. An issue, not only because of the high levels of emissions and their consequences on climate change, but also because of the finite nature of these fuels.

Genesal Energy is very aware that it is urgent to find new sustainable fuels for those sectors where electrification is not going to happen overnight. HVO enters the scene, which in recent years has been positioning itself as one of the main alternatives to diesel. We give you all the keys to this new fuel.

What is HVO?

Hydrogenated Vegetable Oil (HVO) is a second-generation biofuel. Although it has the words “vegetable oil” in its name, it can be produced from a variety of vegetable and non-vegetable sources:

  • Used vegetable cooking oil (UCO, Used Cooking Oil).
  • Waste animal fat.
  • Tall oil, a by-product of wood pulp manufacture.
  • Non-food grade vegetable oils (rapeseed, soybean and palm).

On their own, these oils are not effective fuels. However, through a process known as hydrotreating, it is possible to convert the fats in these oils into hydrocarbons almost identical to conventional diesel.

Is it the same as biodiesel?

No, biodiesel and HVO are different fuels. While both are based on triglycerides from vegetable oils and animal fats, biodiesel is made by esterification: the oily source is treated with an alcohol, usually methanol, and a catalyst. This produces glycerine and a fuel made from fatty acid methyl esters or FAME (Fatty Acid Methyl Ester).

On the other hand, to obtain HVO, the oils are subjected to a hydrotreating process. Simply put, hydrogen is used to remove oxygen from the oil at high temperatures, splitting the fat molecules into separate chains of hydrocarbon molecules. The result is a stable fuel comparable to fossil diesel in both form and performance, making HVO superior to biodiesel as an alternative to fossil fuel.

What are the advantages of using HVO?

They include the following:

 

 

  • -If waste oils are used as source, and produced relatively locally, the use of HVO can result in a reduction of CO2e emissions by up to 90%.
  • When burning HVO, emissions of carbon monoxide (COx) and other polluting particles are lower.
  • Its service life is long: up to ten times longer than diesel.
  • Its performance is maintained even at extreme temperatures (-30°C).
  • It has good chemical characteristics. It is aromatic, low density, with a very high cetane number and no sulphur. In addition, its calorific value, and therefore its energy content, is higher than that of biodiesel.
  • Unlike biodiesel, which needs to be blended with conventional diesel to work properly, HVO is a direct fuel, which can be completely replaced in most diesel units.
  • Also in comparison, biodiesel is prone to degradation and needs very specific planning for storage. Only a single oil tank is needed to store HVO. In fact, conventional diesel tanks can be filled with HVO, and vice versa, so that if, for example, we are running on HVO, but it runs out and it is impossible to procure it quickly enough, we can switch back to diesel.

Different brands in the combustion engines and distributed energy worlds have already started to echo the benefits of HVO, certifying that their products are compatible with this biofuel.

For example, several companies have declared that all their Euro 5 and Euro 6 engines are compatible with the use of HVO.

Is HVO sustainable?

Speaking of sustainability we must pay attention not only to its properties, but also to its entire value chain. Are the source and production relatively local? Regarding the origin of the source, are only waste oils used, or do they also include, for example, oil crops? Have changes in land use been necessary to make such crops available? If we look at the whole picture, to speak of a 100% HVO we need to be sure that it is produced from a source derived from real waste and that environmental and social criteria are respected along the whole value chain.

And another question arises: If we have available an HVO that we know is not 100% sustainable… Is it better to use it or to continue using fossil diesel? Do we look for an alternative, such as another type of biofuel or even a synthetic fuel? These are difficult questions to answer that depend on many factors.

The Greenesal Scale

In order to facilitate decision making on the choice and use of fuels, Genesal Energy has created the “Greenesal Sustainability Assessment Scale for Fuels”.

It is a tool that will allow us to evaluate the sustainability of fuels, so that it is not only easier to choose between the different options available, but it will also provide a clear idea of the real impact of each one of them.  In addition, the tool will fairly weight factors related to the three spheres of the sustainable development:

  • Environmental sphere: raw material origin, GHG emissions, soil organic carbon, eutrophication, acidification, energy balance, biodiversity.
  • Economic sphere: capital costs, operational costs.
  • Social sphere: land rights, issues related to working conditions, relationship with local communities.

In this way, not only will it be possible to distinguish between different types of fuel, but it will also be possible to know which has a greater positive impact on the search for a sustainable future.

 

Sustainability. What it really is?

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Over the last few years, the terms sustainability and sustainable development have been on everyone’s lips. Sustainable vehicles, sustainable fuels, sustainable fashion, sustainable food products… but do you really know what these concepts mean?

What is sustainability?

The concept of sustainable development was first recorded 36 years ago, with the publication in 1987 of the Brundtland Report for the United Nations, entitled “Our Common Future”. It warned of the negative environmental consequences of excessive industrialisation, economic development and globalisation, and proposed sustainability strategies centred around 3 main strategic lines:

  • Quality and sustainable economic growth to alleviate poverty.
  • Improving the quality of this economic growth, addressing issues such as energy supply, food security and the preservation of ecosystems.
  • Care for the environment, which should become a fundamental element in the decision-making process of institutions, organisations and companies.

In addition, the report focused for the first time on social, economic and environmental issues and how they relate to each other. It also clearly defined what is meant by sustainable development: “Development that meets the needs of the present without compromising the ability of future generations to meet their own needs”.

The 3 pillars of sustainable development

Sustainability is still understood in the same way today, with the emphasis still being placed on the need to find an integrated balance between the social, environmental and economic spheres to speak of truly sustainable development:

Social justice.

It seeks the well-being of all people and communities. We all need to have our basic needs covered: jobs, healthcare, food and energy security, water supply or access to good education, among others. Furthermore, these issues must be addressed in a way that considers and respects the cultural and social diversity of each community and ensures that there are no situations of injustice or discrimination of any kind, promoting the role of all members of society in determining their future.

Economic viability.

It pursues a new business model that generates wealth in a sustainable way. The productive system must satisfy social needs while ensuring that neither natural resources nor the well-being of future generations is put at risk. In other words, the economic approach must integrate the needs of the population and environmental limits to promote responsible balance in the long term.

Environmental protection.

In order to find a model that allows us to exploit resources without depleting them, contributing to their recovery for future use, and to make progress in the fight against climate change, it is necessary to apply environmental protection measures that, at the same time, consider the needs of the population and the economic means available where they are to be applied.

How to achieve sustainability? The 2030 Agenda

Once the concept of sustainability was defined, the next challenge was to figure out how to achieve it. The concept needed to be crystallised into concrete policies that would provide a stable framework for action; this led to the emergence of the 2030 Agenda and the Sustainable Development Goals (SDGs).

The Agenda was adopted in September 2015 by the 193 UN Member States as an ambitious roadmap to achieve sustainable development by 2030 by ending poverty, protecting the planet and improving the lives and prospects of people around the world. It is composed of 17 SDGs, which are further subdivided into 169 targets and 232 indicators.

This is not the first initiative in favour of sustainable development; in fact, the SDGs are a continuation of the UN’s Millennium Development Goals (2000-2015), which at the time constituted the first international confluence to tackle global problems. While it is true that not all the targets set by the MDGs were met, there were important advances that were extended through the 2030 Agenda, such as the realisation of the need to work collaboratively. Only through partnerships and the active involvement of people, companies, administrations and countries around the world will it be possible to achieve the SDGs.

In terms of its central axes, the 2030 Agenda is built around what are already known as the 5Ps:

1- People

End poverty in all its forms and ensure that all people can fulfil their potential with dignity and equality in a healthy environment.

2- Planet

Protect the planet’s natural resources through sustainable consumption, production and management, and combat climate change, to ensure a decent environment for future generations.

3- Prosperity

To ensure that everyone can enjoy a prosperous and fulfilling life, and that economic, social and technological progress occurs in harmony with nature.

4- Peace

Foster peaceful, just and inclusive societies free from fear and violence.

5- Participation

Implement the Agenda through strong global partnerships, based on solidarity and focused on the needs of the most vulnerable.

Energy Transition: the importance of distributed energy networks and generator sets.

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Energy is one of the main axes on which economic and social activities rest.

During the last decades, the energy demand has steadily increased and, according to the International Energy Agency IEA, it will have increased more than a 30 percent by 2040. These days, the decarbonisation of the economy is boosting its electrification. This means that every sector of activity is contributing to an increase in the electricity consumption.

Energy Transition

This process is taking place in an environment where climate change and its consequences are being fought and the sustainable development goals and life quality standards are paramount. A complete sector transformation is needed, where all agents involved in the electricity system shall evolve through the so-called Energy Transition. This means moving from the traditional model of electricity generation, heavily centralised and based on fossil fuels, to a new decarbonised model based on renewable sources of energy where distributed generation prevails.

Microgrids

In this new context, Microgrids stand out as feasible, reliable and affordable solutions.

They consist of two-direction hybrid generation systems which allow electricity distribution from the suppliers to the end consumers using digital technology and favouring the integration of renewable sources of generation. They are normally equipped with control systems that foresee consumptions and work-cycles of their elements and fitted with energy storage elements that make up for the energy demands. They optimise the operation of every element of the microgrid eliminating weak points.

Nevertheless, even increasing the number of operating microgrids, we need to be aware that a completely renewable energy origin power supply is not credible.

We do not have the capability to supply the 100% of the power demand only with clean energies. Not to mention that not every location has access to them. Another problem is their availability. Renewable power generation, conversely to fossil fuel power generation, is not adjustable to the demand so production and demand figures won’t necessarily match. The only way to solve this is energy storage, but it still has its limitations when it needs to be performed at big scale.

Generator sets, the optimal solution

This is why the global short- & medium-term tendency is to combine fossil and renewable energy trying to avoid the weaknesses of both and the dependence of fossil fuels.

Here is where generator sets reveal themselves as an optimal solution providing safety and stability to the systems, fulfilling the energy demands.

Integrating generator sets in the electrical mix provides a solid solution to the instability of the renewable energies. Not depending on environmental conditions for its operation means a higher reliability and ensures power availability.

Another strength of generator sets is that its functioning can be meticulously planned via intelligent management systems which allow programming of operation periods depending on different criteria like time, load, etc… Better efficiency, less costs. They can also operate as a storage alternative, giving a fast response in the event of load variations. Last but not least, they prove a very interesting energy-supplying alternative for places where the conventional grid does not reach like remote rural areas or islands.

Summarizing, generator sets might have a key role in the forthcoming years, backing up the electricity system transformation providing network reliability, safety and efficiency.

Innovation and energy transition, our biggest challenges for 2023

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Sustainability is not a new concern for us at Genesal Energy. Even when few in the industry were thinking about the concept, when it was still considered a passing fad, we were taking it seriously. We began work on a detailed action plan aimed at maximising the energy efficiency of all the projects that bear our name. This commitment to clean energy and the environment has moved from theory to practice and has made it possible for us to complete all of the tasks we set ourselves for 2022.

We have wrapped up a number of projects and implemented important initiatives such as the Faculty of Energy Transition, the first in Galicia, created in collaboration with the University of Santiago de Compostela (USC).

Faculty of Energy Transition

2022 marked the beginning of a wonderful adventure full of possibilities. Within a year of its inauguration the faculty presented its first awards for the best undergraduate and master’s degree theses; going forward these awards will be presented annually to students who have done outstanding work on issues related to energy transition and sustainability.

Many challenges await us in 2023, and environmental guidelines are essential; our intention is to build on the progress made in 2022 in order to achieve the best possible results. We intend to strengthen our commitment to the 2030 Agenda and to achieving the Sustainable Development Goals (SDGs) by implementing new processes to identify and prioritise the areas which are most relevant to the company, many of which already form an integral part of our business strategy.

Energy Transition Plan

2023 will also be the year in which we launch our Energy Transition Plan at the corporate, production and industry levels; we are steadfast in our conviction that the fight against climate change is a moral obligation that demands a long-term commitment, and that words are not enough: change requires action.

This is why we will continue to research and develop sustainable and increasingly efficient solutions throughout 2023, not only for our customers, but also for the company itself.

One of our most exciting projects in this regard is the installation of the first integrated photovoltaic façade in Galicia at our headquarters in Bergondo, A Coruña, which will be 100% operational at the beginning of the year. This achievement is just the beginning of what we want to do in the medium and long term.

Greenesal

We went a step further on our crusade for sustainability and energy transition in 2022, taking concrete action in the form of several specific initiatives. Going forward these will be managed through Greenesal, a thoughtful, well-planned and ambitious programme designed to make a difference in terms of sustainability. We are confident that 2023 will be its year.

Reducing the carbon footprint of all our facilities, hosting courses, seminars and conferences, and promoting collaboration between public bodies and private enterprise in order to encourage R&D&I projects are all part of a long list of initiatives planned by Genesal Energy for the next twelve months.

Data centres and healthcare

Proactivity is one of the company’s guiding principles on our quest to create unique, high-quality, customised energy solutions which are as respectful as possible of the planet. The development of projects for two green hydrogen plants, the design and manufacture of a generator set for a large recycling plant which aspires to be an industry leader in Spain, and equipment designed to ensure a continuous supply of electricity at the new Mint in Madrid are among the solutions developed in 2022 by our engineering department. All of these projects use Genesal Energy customised generator sets; we monitor and oversee the entire purchase and installation process with our clients from minute one, up to and including post-sales maintenance. This is, without a doubt, one of the most important ways in which we add value for our clients, a point of difference which we will continue to improve.

Genesal Energy’s roadmap for the new year is focused on sectors with strong potential for growth in terms of energy use, such as data centres, everything related to renewable energy and the development of energy solutions in fields such as healthcare and strategic defence.

In the ongoing search for competitive advantage, our Distributed Energy Technology Centre (CETED in the Spanish acronym) will continue to play an essential role in our commitment to manufacturing high quality generator sets both for sale and for lease, a business model with a bright future and an increasingly important part of operations at our subsidiaries in Mexico and Peru.

The manufacture of customised generator sets, essential in all facilities and infrastructure related to communication and transport, will also be a priority, together with all of our projects aimed at increasing the use of clean energy sources.

And, of course, as a company founded almost 30 years ago with the dream of becoming an established player on the global market, international expansion and the search for new markets are key goals for the coming year, during which sustainability and energy transition will be our biggest challenges.