Fluctuating fuel costs and environmental targets are putting pressure on many Australian businesses. Fleet operators are feeling it most acutely, and over the last few months, we’ve seen a significant spike in interest for electrified options like hybrids and all-electric powertrains.
At Ford, we believe in giving our customers choice. From plug-in hybrid versions of the Ranger and Transit Custom to full battery electric Transit Customs and E-Transits, our fleet customers can get both capability and lower emissions.
But for many businesses and heavy-duty industries, an electrified solution is not yet the right tool for the job and the journey to net zero will take time. Many existing fleets need to be optimised right now.
That is why I am excited to highlight an existing capability within the current Ford range.
Our most iconic workhorses are fully compatible with Hydro-treated Vegetable Oil (HVO), also known as Renewable Diesel. This includes the Next-Gen Ranger and Everest (from Model Year 2022), the Transit and Transit Custom (from Model Year 19.75 with Euro 6.2 emissions), and the newly launched Ranger Super Duty.
While it’s not available at the local pump yet, HVO is moving to the forefront of the sustainability conversation. It can reduce CO₂ emissions and improve engine performance for fleets that use onsite bowsers or bulk fuel depots. Importantly, HVO offers a low-carbon alternative to conventional diesel in an increasingly volatile global landscape.
What is HVO and Why Does it Matter?
HVO is a second-generation renewable diesel, or hydrobiodiesel, made from waste products like used cooking oils, animal fats, and agricultural waste. Unlike traditional fossil diesel, it is a paraffinic synthetic fuel that offers a much cleaner burn.
It can be used as a stand-alone product or blended with conventional diesel without engine modifications, allowing for the direct substitution of fossil diesel while reducing CO₂ emissions significantly.
For a fleet manager, the benefits are immediate:
- Reduced Environmental Impacts: HVO can reduce greenhouse gas emissions compared to traditional diesel, particularly if made from recycled raw materials.
- A Ready-to-go Solution: There is no need to change your engine, fuel tank, or filters. If you have a compatible Ranger, Everest or Transit you can mix HVO with regular diesel in any proportion or run it at 100% (HVO100/XTL).
- Operational Wins: It can reduce soot emissions from the engine and storage stability problems. It also offers better cold-start performance and a shelf life of up to 10 years - ideal for remote sites and emergency backup.
Setting the Record Straight: HVO vs. Biodiesel
There is often confusion between renewable diesel (HVO) and biodiesel (FAME). It is important to know they are not the same.
Traditional first-gen biodiesel has strict blend limits (usually capped at 20%) and can sometimes require engine modifications. HVO, however, is a pure hydrocarbon that meets the EN15940 standard. It’s more stable, lasts longer, and is a superior product in terms of engine health and storage for modern diesel engines.
Leading the Way: Melbourne Airport
Having HVO-compatible vehicles helps fleets hit sustainability targets without the capital expenditure of a total infrastructure overhaul.
The team at Melbourne Airport is already reaping the benefits. In 2025, they began testing HVO in Rangers, Everests and Transits, collaborating with Ford engineers who monitored the vehicles being tested to ensure they performed as expected. Following a successful trial, Melbourne Airport has now transitioned their entire Ford diesel fleet to HVO. A 30,000-litre HVO tank and bowser is expected to be installed on site next week.
“We run a mixed fleet. Initially, everyone wanted to get on the EV and hybrid bandwagon, but it isn’t that simple for us, says Chris White, who oversees the fueling needs for Melbourne Airport’s fleet. “To electrify our whole fleet would have required a massive investment in charging infrastructure, even 8 superchargers for 50 units isn’t enough based on usage patterns. Using renewable diesel is so much easier; there’s no new infrastructure required, just swapping diesel for HVO in the onsite tank. We now run all our Fords and industrial equipment with HVO – it’s brilliant.”
One of the biggest advantages for Melbourne Airport is managing industrial equipment. These vehicles can sit unused for months, and conventional diesel can degrade or erode tanks. HVO, in contrast, has a shelf life of up to 10 years.
“Conventional diesel fuel in a running vehicle in a semi-enclosed space is smelly, but with HVO it just smells a bit like a fish and chips shop,” says White.
While the cost is slightly higher than traditional diesel delivered to site (around $0.50-$0.70 per litre more), White believes the benefits outweigh the cost. “We don’t need to replace our existing equipment and vehicles to lower our emissions, and we no longer need the additives we used to add to diesel to improve fuel combustion.”
Ready for The Road
We engineered our core commercial vehicle line-up five years ago to support the choice to use HVO, meaning that when the fuel industry was ready, Ford customers would be ready too.
HVO is a step towards a more sustainable future - one that is compatible with your existing operations, renewable, and ready for the road today.
Michael Elias is the General Manager, Ford ProTM Australia
