- Rolls-Royce advocates for targeted policies to unlock HVO’s potential as a transitional low-carbon fuel while other solutions are being developed as low carbon long-term substitutes for fossil diesel
- Up to 90% lifecycle CO₂ reduction compared to fossil diesel: HVO enables immediate and significant emission cuts in backup power for data centres using existing infrastructure
- Advances Singapore’s leadership in sustainable data centre solutions.
Rolls-Royce’s Power Systems division has released a position paper with Microsoft highlighting the potential of Hydrotreated Vegetable Oil (HVO) as a sustainable transitional fuel for backup power in data centres in Singapore. The paper outlines the opportunities and regulatory conditions necessary to establish HVO and other low-carbon fuels as alternatives to fossil diesel in critical digital infrastructure.
HVO is a high-quality bio-based paraffinic fuel produced from waste, residual fats and oils, which can reduce lifecycle CO₂ emissions by up to 90% compared to fossil diesel and is compatible with existing diesel generator infrastructure without technical modifications, provided the systems are approved for HVO use. For data centres, this provides a practical and immediately deployable solution to decarbonise backup power. It furthermore aligns with Singapore‘s Green Data centre Roadmap (GDCR) and its longer term 2050 net-zero targets.
The position paper identifies priorities to enable full HVO adoption, including harmonisation of standards, ensuring cost competitiveness, streamlining regulatory approvals, strengthening market development and partnerships across the supply chain, and continuing to drive research and innovation.
“We believe that Singapore is well-positioned to lead the adoption of HVO with the right policy framework, infrastructure and support.” said Tobias Ostermaier, President Stationary Power Solutions at Rolls-Royce Power Systems. “HVO is a practical step to decarbonise critical infrastructure and provides an immediately deployable lever to reduce emissions for the potential-rich data centre sector. What’s needed now is a clear regulatory framework to support the use of sustainable fuels like HVO, which will enable planning certainty and investment confidence.”