Renewable Diesel Production via Hydroprocessing of Lipids

Introduction

Renewable diesel—also known as hydrotreated vegetable oil (HVO)—is a high-quality, drop-in replacement for petroleum diesel, produced by hydroprocessing of lipids such as vegetable oils, animal fats, and waste cooking oils. Unlike biodiesel (FAME), renewable diesel is chemically identical to fossil diesel, offering better engine compatibility, performance, and shelf life.

The process involves hydrodeoxygenation, isomerization, and cracking, converting triglycerides and free fatty acids into paraffinic hydrocarbons. With increasing demand for low-carbon fuels, HVO is gaining rapid traction in global energy markets, especially for transportation, aviation, and heavy-duty sectors.

What Products Are Produced?

• Renewable Diesel (n-alkanes, iso-alkanes) – Drop-in fuel
• Renewable Jet Fuel (SAF) – After further upgrading
• Naphtha and Propane – Light fractions for petrochemicals
• Bio-lubricants and Green Waxes – High-value byproducts

Pathways and Production Methods

1. Feedstocks

• Edible oils: Soybean, palm, rapeseed
• Non-edible oils: Jatropha, algae oil
• Waste oils: Used cooking oil (UCO), tallow, yellow grease

2. Hydroprocessing Steps

• Hydrodeoxygenation (HDO): Removes oxygen from triglycerides
• Decarboxylation / Decarbonylation: Removes oxygen as CO or CO₂
• Hydrocracking: Breaks down longer chains
• Isomerization: Improves cold-flow properties

3. Typical Reaction Conditions

• Temperature: 300–450 °C
• Pressure: 30–100 bar H₂
• Hydrogen source: Green H₂ or steam methane reforming

Catalysts and Key Tools Used

Catalysts:

• Sulfided CoMo / NiMo on alumina (for HDO)
• Noble metals (Pt, Pd) on zeolites or silica-alumina (for isomerization)
• Bifunctional catalysts for hydrocracking

Reactors:

• Fixed-bed reactors (commercial standard)
• Slurry-phase reactors (for feed flexibility)
• Trickle-bed reactors with recycle systems

Pretreatment Units:

• Degumming, deacidification, and filtration of lipids to prevent catalyst poisonin

Case Study: Neste’s HVO Technology (Finland)

Highlights

• World’s largest producer of renewable diesel (Neste MY)
• Utilizes waste fats, fish oils, and residues
• Patented NEXBTL process combines HDO + isomerization
• Product used in road transport, aviation, and marine sectors

Timeline

• 2007 – First commercial HVO plant commissioned in Finland
• 2015 – Expanded production to Singapore and Rotterdam
• 2022 – Over 3.3 million tons of renewable diesel produced annually
• 2024 – Joint venture with Marathon (USA) to convert refinery to HVO

Global and Indian Startups Working in This Area

Global

• Neste (Finland) – Market leader in HVO
• Diamond Green Diesel (USA) – Valero + Darling Ingredients JV
• TotalEnergies (France) – HVO at La Mède biorefinery
• UPM (Finland) – Produces renewable diesel from tall oil

India

• CSIR-IIP (Dehradun) – Developed hydroprocessing pilot for jatropha oil
• Hindustan Petroleum (HPCL) – HVO trials with used cooking oil
• IOC R&D (Faridabad) – Lab-scale hydrotreating of non-edible oils
• Tata Projects – Exploring waste-to-fuel integration with oil refineries

Market and Demand

The global renewable diesel market was valued at USD 10.5 billion in 2023, projected to grow to USD 28.4 billion by 2030, at a CAGR of ~15.2%.

Major End-Use Segments:

• Road transport and commercial fleets
• Aviation fuel (SAF)
• Marine sector
• Refinery blending and clean diesel mandates

Key Growth Drivers

• Drop-in compatibility with diesel engines
• Policies promoting SAF and low-carbon fuels (e.g., EU RED II, U.S. RFS)
• Decarbonization of hard-to-electrify sectors
• Utilization of waste oils aligns with circular economy goals
• Growing corporate demand for clean logistics

Challenges to Address

• Feedstock availability and price volatility
• Catalyst deactivation due to impurities (P, S, metals)
• Need for high H₂ consumption, affecting sustainability
• Infrastructure costs for retrofitting or building new units
• Competition with food supply chains for oil-based feedstocks

Progress Indicators

• 2007 – First HVO plant by Neste (Finland)
• 2012 – Pilot HVO runs in India using jatropha and karanja oil
• 2019 – SAF production via HVO upgrades begins
• 2022 – IOC and HPCL conduct domestic UCO-based HVO trials
• 2024 – Neste and Total expand capacity for airline contracts

Renewable diesel via hydroprocessing of lipids is at TRL 9 globally (fully commercial), and at TRL 6–7 in India, with pilot-scale deployments and early commercialization under progress.

Conclusion

Renewable diesel from hydroprocessed lipids offers a ready-to-use, cleaner-burning fuel for today’s engines—without the need for infrastructure change. With growing mandates on carbon intensity reduction and biofuel blending, this technology stands out as a scalable and mature solution for energy transition.

India, with its abundant used cooking oil and non-edible feedstocks, and ongoing refinery R&D, has the potential to become a regional hub for renewable diesel and SAF production, supporting its net-zero and circular economy ambitions.

Wish to have bio-innovations industry or market research support from specialists for climate & environment? Talk to BioBiz team – Call Muthu at +91-9952910083 or send a note to ask@biobiz.in