#hydrotreatedvegetableoil

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HVO for Data Center Backup Market Size Evaluation and Growth Forecast 2026 to 2035

InsightAce Analytic Pvt. Ltd. announces the release of a market assessment report on the "Global HVO for Data Center Backup Market Size, Share & Trends Analysis Report By Data Center Type (Hyperscale Data Center, Colocation and Retail, Others), By Feedstock Type (Edible Vegetable Oils, Used Cooking Oil, Tall Oil, Crude Palm Oil, Animal Fats, and Others), By Technology (Standalone Hydrotreating Technology and Co-Processing Technology),-Market Outlook And Industry Analysis 2035"

Global HVO for Data Center Backup Market Size is valued at USD 14.3 Mn in 2025 and is predicted to reach USD 41.3 Bn by the year 2035 at a 11.6% CAGR during the forecast period for 2026 to 2035.

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Hydrotreated Vegetable Oil (HVO) is a next-generation, drop-in renewable diesel fuel developed to meet the stringent performance and reliability requirements of backup power systems in mission-critical environments such as data centers. Produced through the hydrotreatment of sustainable biological feedstocks—including waste vegetable oils, animal fats, and non-food biomass—HVO offers a high-quality alternative to conventional fossil diesel. Its core value proposition lies in enabling significant reductions in greenhouse gas emissions and local air pollutants while maintaining the operational dependability essential for continuous uptime. In doing so, HVO directly supports the data center sector’s transition toward more sustainable and resilient energy infrastructure.

The market for HVO in data center backup power is evolving from early-stage adoption into a strategic solution aligned with both energy resilience and corporate sustainability objectives. Market growth is closely linked to the rapid global expansion of hyperscale and colocation data centers, which are under increasing regulatory and stakeholder pressure to achieve net-zero emissions. A key advantage of HVO is its capacity to deliver immediate and substantial lifecycle carbon reductions—often up to 90% compared with conventional diesel—without requiring modifications to existing generator assets. As supply chains strengthen and feedstock diversification improves, HVO is expected to move beyond a niche option and become a core component of clean backup power strategies across the data center industry.

List of Prominent Players in the HVO for Data Center Backup Market:

Neste

Repsol

TotalEnergies

Phillips 66 Company

Eni S.p.A.

Crown Oil Ltd

Foster Fuels Inc.

Certas Energy

LubiQ HVO Fuels

Rehlko

Rolls-Royce plc

Caterpillar

Cummins Inc.

Moteurs Baudouin

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Market Dynamics

Drivers:

The HVO for data center backup market is expanding as operators increasingly seek low-emission and environmentally responsible alternatives to conventional diesel. The rapid growth of cloud computing, artificial intelligence, and digital services is intensifying the need for highly reliable backup power systems that also align with corporate sustainability objectives. HVO provides a drop-in renewable fuel that enables substantial lifecycle carbon reductions while maintaining the reliability required for continuous operations. In addition, mounting regulatory pressure to decarbonize data center activities, along with corporate net-zero commitments, is accelerating the adoption of HVO as a scalable and climate-aligned solution for backup generation.

Challenges:

Despite its environmental advantages, the market faces several constraints. The cost of HVO remains higher than that of traditional diesel, increasing operating expenses for data center operators focused on long-term cost efficiency. Limited regional availability and inconsistent supply chains further restrict large-scale deployment, particularly for hyperscale facilities that require uninterrupted and high-volume fuel access. Moreover, infrastructure-related considerations—such as fuel storage validation, logistics adjustments, and generator warranty compliance—can delay adoption and add complexity to implementation.

Regional Trends:

In 2025, North America accounted for the largest share of the HVO for data center backup market, supported by the high concentration of colocation and hyperscale facilities in the United States and Canada. Ongoing expansion by leading cloud service providers, coupled with stringent uptime requirements and increasing investments in resilient energy infrastructure, has strengthened demand for advanced and sustainable backup power solutions across the region.

Over the forecast period, Asia Pacific is expected to register the fastest growth. Rapid digitalization, government-driven data localization policies, and expanding IT infrastructure in countries such as China, India, Japan, and Singapore are driving large-scale data center development. Rising deployment of generator systems, combined with greater emphasis on energy security and sustainability, is creating strong momentum for HVO adoption as a clean and reliable backup power option in the region.

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Recent Developments:

In october 2024: Verne's backup generators will be powered by Neste's MY Renewable Diesel (HVO100) at data centers in Helsinki, Pori, and Tampere, Finland. Verne's dedication to sustainability is supported by this substantial 90% reduction in greenhouse gas emissions from fossil fuels to HVO. Neste's renewable diesel is a great option for backup power in data centers and helps achieve long-term environmental goals because it is produced entirely from renewable resources and guarantees dependable operation even in extremely cold conditions.

Segmentation of HVO for Data Center Backup Market-

By Data Center Type-

Hyperscale Data Center

Colocation and Retail

Others

By Feedstock Type -

Edible Vegetable Oils

Used Cooking Oil

Tall Oil

Crude Palm Oil

Animal Fats

Others

By Technology-

Standalone Hydrotreating Technology

Co-Processing Technology

By Region-

North America-

The US

Canada

Europe-

Germany

The UK

France

Italy

Spain

Rest of Europe

Asia-Pacific-

China

Japan

India

South Korea

South East Asia

Rest of Asia Pacific

Latin America-

Brazil

Argentina

Mexico

Rest of Latin America

 Middle East & Africa-

GCC Countries

South Africa

Rest of Middle East and Africa

Read Overview Report- https://www.insightaceanalytic.com/report/hvo-for-data-center-backup--market/3406

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InsightAce Analytic is a market research and consulting firm that enables clients to make strategic decisions. Our qualitative and quantitative market intelligence solutions inform the need for market and competitive intelligence to expand businesses. We help clients gain competitive advantage by identifying untapped markets, exploring new and competing technologies, segmenting potential markets and repositioning products. Our expertise is in providing syndicated and custom market intelligence reports with an in-depth analysis with key market insights in a timely and cost-effective manner.

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[rakshakulkarni]

Hydrotreated Vegetable Oil Market Key Players Analysis - Eni S.p.A., St1 Oy, Neste, Valero Energy Corporation, PT Pertamina.

InsightAce Analytic Pvt. Ltd. announces the release of a market assessment report on the "Global Hydrotreated Vegetable Oil Market Size, Share & Trends Analysis Report By application (Renewable Diesel and Sustainable Aviation Fuel (SAF)), end-user (Transportation, Agricultural Machinery, Industrial), feedstock (Edible Vegetable Oils, Crude Palm Oil, Used Cooking Oil, Tall Oil, Animal Fats), and technology (Standalone Hydrotreating Technology and Co-Processing Technology), Region, Market Outlook And Industry Analysis 2034"

The global Hydrotreated Vegetable Oil Market is estimated to reach over USD 195.83 billion by the year 2034, exhibiting a CAGR of 21.2% during the forecast period. 

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Hydrotreated Vegetable Oil (HVO) exhibits a chemical structure closely aligned with that of conventional fossil-based diesel, positioning it as a sustainable and efficient alternative to petroleum-derived diesel fuels. Produced through an advanced hydrotreatment process, HVO is characterized by the removal of impurities, reduced maintenance requirements, and improved safety in handling. These features have facilitated its growing adoption within the automotive industry, particularly due to its full compatibility with existing diesel engines and fueling infrastructure. HVO can be used independently or blended with traditional diesel in any proportion, without necessitating engine modifications. Additionally, its high cetane rating ensures dependable engine performance under diverse environmental conditions, enhancing its appeal as a renewable fuel option.

The increasing use of HVO across the automotive sector is largely driven by its cleaner production method, which contributes to lower operational expenses and minimizes fuel degradation risks. As the global automotive market expands—fueled by rising population, ongoing innovation in vehicle manufacturing, and overall economic development—the demand for sustainable fuel alternatives is also accelerating. This trend is further reinforced by industry-wide initiatives aimed at reducing emissions and promoting energy sustainability, positioning HVO as a key element in the evolution of next-generation transportation fuels.

List of Prominent Players in the Hydrotreated Vegetable Oil Market:

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Market Dynamics

Drivers:

The global market for Hydrotreated Vegetable Oil (HVO) is witnessing significant expansion, primarily driven by its growing adoption as a renewable diesel substitute in both pure and blended applications. HVO’s compatibility with existing diesel engines—requiring no modifications—along with its high cetane rating, ensures reliable engine performance across varying conditions. The hydrotreatment process enhances fuel quality by removing impurities, thereby improving handling safety and reducing maintenance demands. Furthermore, the continued growth of the global automotive sector—fueled by technological advancements, a rising vehicle population, and broader economic progress—is contributing to the increasing demand for HVO-based fuels.

Challenges:

However, elevated production costs remain a key obstacle to the widespread adoption of HVO. To address this, several regions are pursuing policy measures that support emission reduction goals, positioning HVO as both a cost-effective and environmentally sustainable alternative to conventional diesel. Additionally, concerns regarding the environmental impact of certain feedstocks—such as palm oil—have raised issues related to deforestation and biodiversity, potentially limiting broader market acceptance.

Regional Trends:

North America is anticipated to capture a substantial share of the global HVO market, bolstered by strong consumer interest in low-emission and renewable fuel options. This growth is further supported by robust regulatory frameworks aimed at lowering carbon footprints and accelerating the adoption of cleaner energy solutions. In parallel, the Asia-Pacific region is also demonstrating increased activity in the HVO market, driven by growing environmental awareness and a strategic shift toward sustainable fuel alternatives.

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Recent Developments:

In Sept 2023, Petrochemical manufacturer LG Chem and Eni (ENI.MI) are investigating the possibility of building a biorefinery in South Korea. In the next years, Eni thinks biofuels derived from vegetable oil, leftover cooking oil, and grease will be crucial to the decarbonization of the truck, aircraft, and shipping industries.

In Nov 2022, Crimson Renewable Energy Holdings, LLC agreed to sell its used cooking oil (UCO) collection and aggregation business and affiliated assets to Neste. This acquisition bolsters Neste's operations and presence in the United States. Neste acquires a prominent UCO collection and recycling enterprise on the West Coast of the United States, including the collection, logistics, and storage of UCO in California, Oregon, and Washington.

Segmentation of Hydrotreated Vegetable Oil Market-

By Application-

Renewable Diesel

Sustainable Aviation Fuel (SAF)

By End-User-

By Feedstock Type-

Edible Vegetable Oils

Crude Palm Oil

Used Cooking Oil

Tall Oil

Animal Fats

Others (Non-Edible Vegetable Oil, Sludge Palm Oil Mill Effluent, and Refining Byproducts)

By Technology Type-

Standalone Hydrotreating Technology

Co-Processing Technology

By Region-

North America-

The US

Canada

Mexico

Europe-

Germany

The UK

France

Italy

Spain

Rest of Europe

Asia-Pacific-

China

Japan

India

South Korea

South East Asia

Rest of Asia Pacific

Latin America-

Brazil

Argentina

Rest of Latin America

 Middle East & Africa-

GCC Countries

South Africa

Rest of Middle East and Africa

Read Overview Report- https://www.insightaceanalytic.com/report/hydrotreated-vegetable-oil-market/2104

About Us:

InsightAce Analytic is a market research and consulting firm that enables clients to make strategic decisions. Our qualitative and quantitative market intelligence solutions inform the need for market and competitive intelligence to expand businesses. We help clients gain competitive advantage by identifying untapped markets, exploring new and competing technologies, segmenting potential markets and repositioning products. Our expertise is in providing syndicated and custom market intelligence reports with an in-depth analysis with key market insights in a timely and cost-effective manner.