UK Investigates Claims of Virgin Palm Oil Fraud in Green Fuel Production
The UK government has launched an investigation into potential fraud involving hydrotreated vegetable oil (HVO) diesel, a green fuel marketed as a sustainable alternative to traditional diesel, following alarming claims that it may contain virgin palm oil.
London, April 9 – The UK government has launched an investigation into potential fraud involving hydrotreated vegetable oil (HVO) diesel, a green fuel marketed as a sustainable alternative to traditional diesel, following alarming claims that it may contain virgin palm oil.
According to a BBC investigation, industry whistleblowers allege that significant volumes of virgin palm oil are being fraudulently relabelled as waste materials, undermining the eco-friendly credentials of the fuel. HVO is widely praised for its ability to reduce carbon emissions by up to 90%, provided it is produced from waste products like used cooking oil or palm oil sludge.
However, the BBC's analysis — shared with the UK Department for Transport (DfT) — casts serious doubt on the authenticity of one of HVO’s key ingredients: palm sludge waste. Data indicates that Europe used more of this material in 2023 than could plausibly be produced globally, suggesting the fuel may be sourced from non-waste origins, including virgin palm oil.
In response, a DfT spokesperson said:
“We take the concerns raised seriously and are working with stakeholders and international partners to gather further information.”
HVO diesel has become increasingly popular in the UK, with consumption rising from 8 million litres in 2019 to approximately 699 million litres in 2024, according to provisional government figures. It is used not only in transportation but also in events such as music festivals due to its reputation as a cleaner-burning fuel.
If the fraud allegations are true, the environmental implications could be severe. Virgin palm oil production is associated with tropical deforestation, a major contributor to climate change and a threat to endangered species like orangutans.
One European biofuel manufacturer told the BBC:
“This palm oil floods the market like cancer.”
The investigation raises critical questions about transparency and traceability in the biofuel supply chain and may lead to increased regulatory scrutiny over what qualifies as a “green” fuel.
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