Stellantis Bets on HVO Biofuel to Decarbonize Diesel Fleets Now

In a calculated strategic pivot, global auto giant Stellantis has unveiled HVO Aurora, a project designed to offer businesses an immediate path to decarbonize their commercial vehicle fleets—not with new electric vans, but with greener fuel. The initiative, which kicked off with a month-long European road test, aims to prove that hydrotreated vegetable oil (HVO), a biofuel refined from waste like used cooking oil, can slash CO₂ emissions in existing diesel vehicles, providing a pragmatic alternative in the complex energy transition.

This move isn’t just about a new fuel; it’s a direct response to the immense operational and financial pressures facing fleet managers across Europe. While the long-term industry trajectory points toward electrification, driven by ambitious regulations like the EU’s 2035 ban on new internal combustion engine sales, the transition is fraught with challenges. High upfront costs for EVs, range anxiety, and the slow build-out of charging infrastructure are significant hurdles for businesses that depend on their vehicles for daily revenue. HVO, a “drop-in” fuel that requires no engine modifications, represents a classic bridge technology. But is this a genuine long-term strategy for Stellantis, or a clever stopgap to meet emissions targets while the EV ecosystem matures?

The HVO Aurora project’s credibility hinges on data and verification. To achieve this, Stellantis has partnered with SP3H, a French tech firm specializing in smart sensors. Two vans—a Citroën Berlingo and a Fiat Professional Ducato—have been fitted with SP3H’s FluidBox Micro sensor for a tour across Europe to gather real-world performance data. This technology is crucial because it doesn’t just enable the use of HVO; it tracks, verifies, and documents it. For businesses navigating complex ESG (Environmental, Social, and Governance) reporting standards, this traceability is paramount. “HVO Aurora demonstrates that it is possible to reduce well-to-wheel emissions right now with solutions compatible with the vehicles our customers already use,” explained Luca Marengo, a product and innovation lead at Stellantis. The focus on “well-to-wheel” is a subtle but important jab at the EV-only narrative, acknowledging the carbon footprint of battery production and electricity generation.

By confirming that all its current commercial and passenger diesel vehicles are fully compatible with HVO fuel (meeting the EN15940 standard), Stellantis is sending a powerful message to the market. The company is essentially telling fleet owners that they don’’t have to wait—or invest heavily in new infrastructure—to start reducing their carbon footprint. The compatibility even extends to many older Euro 5 and Euro 6 diesel vehicles already on the road, dramatically expanding the potential impact. This pragmatic approach could resonate deeply with small and medium-sized enterprises that form the backbone of Europe’s logistics network. The key question now is, will this move pressure competitors like Ford or Volkswagen to more aggressively certify their own fleets for HVO, potentially creating a new competitive front in the commercial vehicle market?

Looking ahead, the success of HVO hinges on two critical factors: supply and cost. While derived from waste, the scalability of HVO production is a significant concern. Can the supply of used cooking oils and animal fats meet a surge in demand without creating unintended economic or environmental consequences? Furthermore, HVO is currently more expensive than conventional diesel at the pump. Without government subsidies or a robust carbon pricing mechanism that penalizes fossil fuels, widespread adoption could stall. While the HVO Aurora project is a bold and practical initiative, it may ultimately serve as a valuable, albeit temporary, reprieve for the internal combustion engine, buying time for both Stellantis and its customers as the industry navigates the bumpy road to an all-electric future.