Biofuel Guide 2026: Biodiesel, HVO, Ethanol, Mandates & Pump Labels

Every litre of petrol or diesel you pump in Europe, North America, or Australia almost certainly contains biofuel — you just may not have noticed. Ethanol blended into petrol and biodiesel (FAME or HVO) blended into diesel are now mandated by law across most major markets. This guide explains what the different biofuels are, how mandates work, how to read pump labels, and what it means for your vehicle and wallet.

For live pump prices reflecting biofuel-blended grades, use the fuel price explorer. For the petrol grade glossary, see our entry on petrol grades.

Types of road biofuel

BiofuelFuel typeFeedstockBlend limit (EU)Drop-in?
Ethanol (bioethanol)Petrol additiveWheat, corn, sugar beet, celluloseE10 standard; E85 flex-fuel onlyUp to E10 in standard engines
FAME biodieselDiesel additiveRapeseed, palm, soy, used cooking oilB7 standard; B10 approvedUp to B7 in all diesel engines
HVO (paraffinic diesel)Diesel drop-inVegetable oils, animal fat, UCONo limit — 100% compatibleYes — any diesel engine
Biomethane / bio-CNGCNG substituteOrganic waste, agricultural residues100% substitution possibleYes — any CNG vehicle

Ethanol blends: E5, E10, and E85

Bioethanol is produced by fermenting plant sugars. In petrol engines, it acts as an octane booster (ethanol has a blending octane of ~113 RON) and oxygen carrier, reducing CO emissions. The trade-off is approximately 3% lower energy density per litre compared to pure petrol, meaning fractionally higher fuel consumption.

  • E5: Up to 5% ethanol. The previous EU standard and still available as the premium/protection grade (95 E5 or 98 E5) for vehicles incompatible with E10.
  • E10: Up to 10% ethanol. EU standard grade since September 2021; also UK standard. Compatible with almost all vehicles made after 2000. Check the manufacturer compatibility list if in doubt.
  • E85: 85% ethanol, 15% petrol. Available at specialist pumps; requires a Flex Fuel Vehicle (FFV) engine designed for high-ethanol blends. Common in Sweden, Brazil (E100), and US Midwest. Cannot be used in standard petrol engines.

For more detail on E85, see our glossary entry on E85 fuel.

FAME biodiesel: B7 and B10

FAME (Fatty Acid Methyl Ester) biodiesel is produced by transesterification of vegetable oils or animal fats. It has lower energy density than fossil diesel (~12% less per litre), slightly lower cetane quality at high blends, and can gel in cold temperatures. Key considerations:

  • B7: The EU and UK standard diesel. All modern diesel vehicles are B7-compatible. The blend contains up to 7% FAME by volume.
  • B10: Contains up to 10% FAME. Permitted in newer diesel engines (check manufacturer); not safe for all vehicles.
  • Cold flow: FAME biodiesel has a higher cloud point than fossil diesel — above-blend FAME diesel can cause filter blockages in sub-zero conditions. Operators in cold climates use winter-grade diesel with lower FAME content.
  • Feedstock controversy: Palm oil-derived FAME has high land-use change emissions and is being phased out of EU mandates. Used Cooking Oil (UCO) and animal fats are preferred advanced biodiesel feedstocks.

For diesel price trends and the gasoil market context, see our gasoil glossary entry.

HVO paraffinic diesel: the premium option

HVO (Hydrotreated Vegetable Oil) is chemically a paraffinic diesel — it is hydroprocessed rather than transesterified, producing molecules nearly identical to fossil diesel hydrocarbons. This gives it outstanding properties:

PropertyFossil diesel (EN 590)FAME biodiesel (B100)HVO (EN 15940)
Cetane number~51~5670–90
Energy density (MJ/l)~35.7~32.7~34.4
Cold filter plugging point (CFPP)Varies (winter grade: −20°C)Poor (−5 to +15°C)Excellent (−30°C typical)
Aromatic content~25%Near zeroNear zero
Blend limit in standard diesel—7% (B7)100% (drop-in)
Lifecycle GHG saving vs fossil—~50–70%~70–90% (UCO feedstock)

HVO is significantly more expensive than FAME — typically 15–25% above regular diesel at retail. Fleet operators (buses, trucks, agricultural) pay the premium for engine longevity, cold-weather reliability, and greenhouse gas compliance credits. HVO fuelled by waste-based feedstocks (UCO, animal fat) qualifies for the highest renewable fuel credits under EU RED II.

Blending mandates: how governments drive biofuel use

No market produces significant biofuel volumes purely from commercial demand at current production costs — mandates are the policy instrument that forces blending at scale. The main frameworks:

  • EU Renewable Energy Directive (RED II/III): Sets a 2030 target of 29% renewable energy in transport, with sub-targets for advanced biofuels (minimum 5.5% of transport energy by 2030) and restrictions on food-crop biofuels.
  • UK RTFO (Renewable Transport Fuel Obligation): Obligates fuel suppliers to blend an increasing proportion of renewable fuels; 2026 obligation is approximately 12.4% of total road fuel energy from renewables.
  • US RFS (Renewable Fuel Standard): Sets annual volume obligations (RVOs) for conventional biofuel (mostly corn ethanol), advanced biofuel, cellulosic biofuel, and biomass-based diesel.
  • Brazil RenovaBio: Uses decarbonisation credits (CBIOs) to incentivise sugarcane ethanol and biodiesel production; Brazil operates the world's most integrated biofuel market with E27 petrol mandatory nationwide.

EU pump labelling: decoding the symbols

Since 2018, EU Directive 2014/94 requires standardised fuel identification labels at all forecourts. The labels are geometric shapes with letters and numbers:

Label shapeFuel typeExamples
CirclePetrol (gasoline) gradesE5 (circle), E10 (circle), E85 (circle)
SquareDiesel gradesB7 (square), B10 (square), XTL (square — paraffinic/HVO)
DiamondGas fuelsCNG (diamond), LNG (diamond), LPG (diamond)
Square + XTLParaffinic diesel (includes HVO)XTL label on HVO pumps

The number inside the shape (e.g. "10" in E10) gives the maximum biofuel content by volume percentage. If you see only "E5" at the pump, that is the standard unleaded protection grade. For CNG/LPG labelling context, see our CNG glossary entry and our LPG autogas guide.

Biofuel blends and pump price

Biofuel costs affect pump prices through the blending obligation. When biofuel feedstock prices (agricultural commodities, vegetable oils) rise, the cost of meeting mandatory blend obligations increases. In 2022, vegetable oil prices spiked alongside fossil fuel prices, compounding the pump price rise for diesel in markets with high FAME content. The 2025 crude price decline partially offset the biofuel cost component, but UCO and advanced biofuel feedstocks remained expensive due to strong demand from European RED III compliance.

For a comprehensive breakdown of what drives the pump price, see our guide to what makes up the price at the pump. For how oil price changes transmit to pump prices, see our guide on oil price to pump price lag.

Advanced biofuels: HVO, SAF and synthetic fuels

What is biodiesel? Biodiesel (FAME — Fatty Acid Methyl Ester) is a renewable diesel substitute produced by transesterification of vegetable oils, animal fats, or used cooking oil. Biodiesel blend levels in standard diesel range from B7 (7% FAME, the EU/UK standard) to B20 and B100 for specialist applications. B20 biodiesel meaning is simply diesel containing 20% FAME by volume — commonly used in commercial fleets in the US and by European bus operators seeking higher renewable fuel content. The key comparison of biodiesel vs diesel reveals trade-offs: biodiesel offers 50–70% lifecycle CO₂ reduction and is partially renewable, but has lower energy density (~12% less per litre), poorer cold-weather performance, and can cause filter clogging at high blend ratios. The U.S. EIA's biodiesel explainer provides detailed production and consumption data for the world's largest biodiesel market.

What is HVO fuel? HVO (Hydrotreated Vegetable Oil) is a paraffinic renewable diesel produced by hydroprocessing — a fundamentally different process from FAME biodiesel. HVO vs biodiesel is a critical distinction: HVO is a true drop-in diesel replacement with no blend limit, a cetane number of 70–90 (far superior to fossil diesel's ~51), and excellent cold-weather performance down to -30°C. HVO vs diesel comparisons show similar energy density (~34.4 MJ/l vs 35.7 MJ/l for fossil diesel) and identical engine compatibility. HVO100 fuel — pure HVO with no fossil diesel content — is increasingly available at specialist fuel distributors for fleet operators. HVO fuel compatibility is universal: any diesel engine can run on HVO without modification. Renewable diesel explained in simple terms: HVO is renewable diesel. The renewable diesel price premium of 15–25% above fossil diesel reflects feedstock costs (used cooking oil, animal fats) and limited refining capacity. Biofuel carbon emissions vary by feedstock: UCO-based HVO achieves 70–90% lifecycle CO₂ reduction; palm-oil-based FAME may deliver only 30–50% after accounting for land-use change. The IEA bioenergy tracker monitors global HVO production capacity expansion.

Looking further ahead, sustainable aviation fuel (SAF) and synthetic fuels explained represent the next generation of transport energy. SAF vs jet fuel comparisons show that SAF — produced from waste oils, agricultural residues, or power-to-liquid processes — can reduce lifecycle aviation emissions by up to 80% while being blended with conventional Jet A-1 up to 50%. The sustainable aviation fuel cost premium remains high (3–6x conventional jet fuel in 2026) but is expected to decline as production scales under EU ReFuelEU mandates. E-fuels vs petrol is an emerging comparison: synthetic fuels (e-fuels) produced from green hydrogen and captured CO₂ are chemically identical to fossil fuels and can be used in existing engines without modification. E-fuels are currently prohibitively expensive (€3–5/litre) but represent a potential carbon-neutral pathway for legacy vehicle fleets. The BP Energy Outlook models long-term scenarios for synthetic fuel adoption alongside biofuels and electrification, and the EU Renewable Energy Directive (RED III) framework sets the regulatory context for biofuel mandates through 2030 and beyond.

Frequently asked questions

What is E10 petrol and can all cars use it?
E10 contains up to 10% ethanol blended with fossil petrol — the EU standard since 2021 and UK standard. Most cars made after 2000 are compatible. Older carbureted or classic vehicles may experience fuel system issues; E5 (super/premium grade) is retained as the protection fuel. Always check your manufacturer's compatibility list before switching.
What is HVO fuel and is it better than biodiesel?
HVO (Hydrotreated Vegetable Oil) is a paraffinic diesel with a cetane number of 70–90, near-zero aromatics, excellent cold-weather performance, and 100% engine compatibility — no blend limit. Unlike FAME biodiesel (limited to B7 in standard vehicles), HVO is a true drop-in replacement. It costs 15–25% more than regular diesel but provides superior engine performance and higher carbon savings (70–90% lifecycle reduction with waste-based feedstocks).
What does B7 mean on a diesel pump?
B7 indicates up to 7% FAME biodiesel blended with fossil diesel — the standard EU and UK diesel grade. All modern diesel vehicles are B7-compatible. On EU pump labels, B7 appears in a square with "7" inside. If you see B10, that grade contains up to 10% FAME and requires manufacturer confirmation for your specific vehicle.
What is HVO fuel and can any diesel engine use it?
HVO (Hydrotreated Vegetable Oil) is a paraffinic renewable diesel with a cetane number of 70–90, near-zero aromatics, and excellent cold-weather performance. Yes — any diesel engine can use HVO at any blend ratio up to 100% (HVO100) with no modifications required. Unlike FAME biodiesel (limited to B7 in standard vehicles), HVO is a true drop-in fuel. It costs 15–25% more than fossil diesel but delivers 70–90% lifecycle CO₂ reduction with waste-based feedstocks (UCO, animal fat). Major distributors include Neste, TotalEnergies, and Crown Oil.
What are synthetic fuels (e-fuels) and can they replace petrol?
Synthetic fuels (e-fuels) are produced by combining green hydrogen (from renewable electricity) with captured CO₂ to create liquid hydrocarbons chemically identical to petrol or diesel. They are carbon-neutral on a lifecycle basis if produced with renewable energy. E-fuels can be used in existing internal combustion engines without modification — a key advantage over electrification for legacy vehicles. However, e-fuel production is currently expensive (€3–5/litre) and energy-intensive (requiring roughly 5x the electricity of directly powering an EV). Commercial-scale production is expected after 2028–2030, initially targeting aviation and marine sectors where electrification is impractical.
What is the difference between biodiesel and renewable diesel (HVO)?
Biodiesel (FAME) is produced by transesterification — a chemical reaction between vegetable oil/fat and methanol — creating fatty acid methyl esters. It has a blend limit of B7 in standard vehicles and poor cold-weather performance. Renewable diesel (HVO) is produced by hydroprocessing — using hydrogen to convert oils/fats into paraffinic hydrocarbons chemically similar to fossil diesel. HVO has no blend limit (100% drop-in), superior cetane (70–90 vs ~56 for FAME), and excellent cold flow (-30°C CFPP). HVO costs more but is the premium choice for fleets prioritising engine longevity and carbon reduction.