According to a new report from Intel Market Research, the India Hydrotreated Vegetable Oil (HVO) market was valued at US$ 89 million in 2024 and is projected to reach US$ 189 million by 2032, growing at an impressive CAGR of 13.4% during the forecast period (2024–2032). This robust growth is driven by India's accelerating focus on renewable energy sources, supportive government policies promoting biofuels in the transportation sector, and significant advancements in HVO production technologies.
What is Hydrotreated Vegetable Oil (HVO)?
Hydrotreated Vegetable Oil (HVO) is a premium renewable diesel fuel produced through the hydroprocessing of vegetable oils or animal fats. Unlike conventional biodiesel, HVO undergoes a more advanced refining process that removes oxygen, resulting in a fuel with higher cetane numbers, superior cold weather performance, and excellent stability. This drop-in fuel is chemically similar to fossil diesel and can be used in existing diesel engines without modifications, making it a crucial component in the transition to sustainable energy.
HVO is recognized for its ability to significantly reduce greenhouse gas emissions—often by up to 90% compared to conventional diesel—while offering enhanced engine performance and lower maintenance requirements. Its production primarily utilizes waste and residue feedstocks, aligning perfectly with circular economy principles and India's growing sustainability mandates.
📥 Download FREE Sample Report: India Hydrotreated Vegetable Oil (HVO) Market - View in Detailed Research Report
Key Market Drivers
1. Strong Government Initiatives and Policy Support
The Indian government's unwavering commitment to reducing carbon emissions and enhancing energy security is a primary growth catalyst. Policies like the National Policy on Biofuels 2018 and its subsequent amendments mandate the blending of biofuels with conventional fuels, creating a structured demand for HVO. The ambitious Ethanol Blending Programme (EBP), targeting 20% ethanol blending by 2025, complements the broader biofuel strategy, indirectly bolstering the advanced biofuel sector, including HVO.
Furthermore, initiatives such as the Production Linked Incentive (PLI) scheme for advanced chemistry cell battery storage and the Green Hydrogen Mission demonstrate a holistic approach to clean energy, of which HVO is a vital part. These policies are not just aspirational; they are backed by tangible investments and regulatory frameworks that incentivize production and consumption.
2. Rising Demand for Sustainable Transportation Fuels
India's transportation sector, a major contributor to urban pollution, is under increasing pressure to decarbonize. Major corporate fleets, logistics companies, and public transportation authorities are actively seeking cleaner alternatives to meet their Environmental, Social, and Governance (ESG) goals. HVO, with its drop-in capability and proven emission reductions, is becoming the fuel of choice for these entities.
For instance, several leading e-commerce and logistics firms have begun pilot projects to power their delivery fleets with HVO, aiming to reduce their carbon footprint without incurring the high costs associated with fleet electrification. This corporate shift towards sustainability is a powerful market force that is expected to accelerate HVO adoption significantly.
3. Technological Advancements and Feedstock Diversification
The development of advanced hydroprocessing technologies has made HVO production more efficient and cost-effective. Indian refiners are increasingly adopting technologies like Ecofining and Co-Processing, which allow for the use of a wider variety of low-cost, sustainable feedstocks.
There is a growing focus on utilizing non-food feedstocks such as used cooking oil (UCO), animal fats, and algae to avoid the food-versus-fuel debate. The government's emphasis on setting up collection centers for UCO and providing price incentives for second-generation biofuels is effectively creating a sustainable supply chain for HVO production, ensuring long-term market viability.
Market Challenges
- High Production Costs: The initial capital expenditure for setting up HVO production units, especially those based on dedicated Ecofining technology, remains substantial. The cost of sourcing and processing sustainable feedstocks can also be volatile, impacting profitability.
- Feedstock Availability and Supply Chain Constraints: Ensuring a consistent and scalable supply of waste-based feedstocks like UCO is an operational challenge. Establishing an efficient collection and aggregation system across the country requires significant infrastructure investment and time.
- Competition from Other Renewable Options: HVO faces competition from other decarbonization pathways, including compressed biogas (CBG), battery electric vehicles (BEVs), and green hydrogen. Market education is crucial to highlight HVO's specific advantages, such as its immediate applicability in existing infrastructure.
Opportunities Ahead
The future of India's HVO market is exceptionally bright, fueled by a confluence of factors that create a fertile ground for expansion. The ongoing energy transition presents unparalleled opportunities through:
- Export Potential: With Europe and other regions mandating stricter renewable fuel standards, India has the potential to become a significant exporter of sustainable HVO, leveraging its refining capabilities and feedstock potential.
- Integration with Refineries: Many public and private sector oil marketing companies (OMCs) are exploring co-processing capabilities within their existing refineries. This integration can drastically reduce the cost of production and accelerate market penetration.
- Aviation and Marine Biofuel Demand: The emerging markets for Sustainable Aviation Fuel (SAF) and marine biofuels, which often use HVO as a key component, open up new and high-value application segments beyond road transportation.
Notably, industry leaders like Indian Oil Corporation and Reliance Industries have announced strategic investments in advanced biofuel refineries. These developments signal strong confidence in the sector and are expected to catalyze further investments from other players.
📥 Download FREE Sample Report: India Hydrotreated Vegetable Oil (HVO) Market - View in Detailed Research Report
Regional Market Insights
- Western India: Leads the market due to the high concentration of refining infrastructure in states like Gujarat and Maharashtra. The presence of major ports also facilitates the import of technology and export of finished products.
- Northern and Southern India: These regions are emerging as significant demand centers, driven by dense urban populations, stringent air quality norms in cities like Delhi and Bengaluru, and proactive state-level biofuel policies.
- Eastern and Central India: Currently represent untapped potential, but are expected to grow as feedstock collection networks improve and awareness about advanced biofuels increases among industries and transporters.
Market Segmentation
By Technology
- Ecofining Technology Based
- Co-Processing Technology Based
- Others
By Application
- Automotive
- Power Generation
- Industrial Power System
- Others
By End User
- Transportation Fleets
- Power Plants
- Industrial Units
- Others
📘 Get Full Report Here: India Hydrotreated Vegetable Oil (HVO) Market - View in Detailed Research Report
Competitive Landscape
The India HVO market features a mix of large public sector undertakings (PSUs) and agile private sector players. The market is currently in a nascent stage but is characterized by intense competition and strategic partnerships.
The report provides in-depth competitive profiling of key players, including:
- Reliance Industries Limited
- Indian Oil Corporation
- Bharat Petroleum Corporation Limited
- Hindustan Petroleum Corporation Limited
- Adani Wilmar Limited
- Emami Agrotech Ltd.
- Ruchi Soya Industries Ltd.
- Godrej Industries Limited
- GAIL (India) Limited
- Essar Oil Limited
These companies are actively engaging in R&D, forming technology partnerships with global leaders, and securing feedstock supply chains to establish a strong foothold in this promising market.
Report Deliverables
- Comprehensive market size and forecasts from 2024 to 2032
- Detailed analysis of market drivers, restraints, challenges, and opportunities
- Market share analysis and SWOT analysis of key players
- Pricing analysis and regulatory framework overview
- In-depth segmentation by technology, application, and end-user
📘 Get Full Report Here: India Hydrotreated Vegetable Oil (HVO) Market - View in Detailed Research Report
📥 Download FREE Sample Report: India Hydrotreated Vegetable Oil (HVO) Market - View in Detailed Research Report
About Intel Market Research
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- Real-time competitive benchmarking
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- Country-specific regulatory and pricing analysis
- Over 500+ industry reports annually
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