HVO fuel has the following advantages which is why NAC decided to make the switch from diesel:
NAC operate 36 RCVs. It was verified by NAC’s Original Equipment Manufacturer (OEM) Chassis Provider that the use of HVO as a road fuel is acceptable in these vehicles providing it conforms to EN15940 standards.
The RCV provider confirmed the following key points:
NAC developed the Sustainable North Ayrshire Strategy 2024-2027 as a route map to achieve their net zero target.
This project contributes to this target as it focuses on reducing emissions from transport, encouraging low carbon behaviours and considering the use of HVO in heavy fleet to reduce emissions.
The potential to significantly reduce NAC’s existing CO2 emissions within RCVs is detailed in the following table which is based on a 90% reduction.
Vehicle |
Approx. annual fuel usage |
Approx. annual Co2 (conversion - 2.60240) |
Potential annualCo2 emissionsusing HVO (90%) |
Potential annual Co2 reduction (90%) |
|---|---|---|---|---|
1 x RCV |
9,600ltrs |
25 tonnes |
2.5 tonnes |
22.5 tonnes |
36 x RCVs |
345,600ltrs |
900 tonnes |
90 tonnes |
810 tonnes |
Over the course of a 12-month period, almost 810 tonnes of CO2 could be saved, which would account for a reduction of 20.77% in NAC’s overall fleet produced emissions. HVO fuel also reduces particulates and nitrogen oxides.
The project also supports NAC’s:
Council Plan 2023 to 2028 by transitioning to low and zero carbon travel and working more closely and effectively together to reduce carbon emissions and to mitigate the impacts of climate change.
Local Transport and Active Travel Strategy 2023 to 2028 by reducing carbon emissions caused by transport in North Ayrshire.
Corporate Procurement Strategy 2023 to 2026 by supporting NAC’s drive to achieve net zero carbon emissions ensuring that every contract strategy takes account of the potential impact on the environment and identify ways in which the impact can be reduced utilising the Scottish Government’s Sustainable Procurement Tools.
It also supports the Scottish Government’s ambitions by phasing out the need for new petrol or diesel light commercial vehicles in public bodies by 2025, phasing out the need for any new petrol or diesel vehicles in public sector fleets by 2030 and ending the sale of diesel heavy good vehicles (“HGVs”), for vehicles between 3.5 and 26 tonnes by 2035 (noting that most of NAC’s RCVs are 26 tonnes or below).
HVO fuel is around 10-15% more expensive than diesel.
As the price per litre for HVO fuel is everchanging, the market is not stable enough to hold a fixed price. Therefore, as part of the mini competition, suppliers were asked to provide a fixed margin for the duration of the contract that can be added to the daily/weekly cost of diesel/HVO fuel to obtain the price per litre. The price per litre is therefore made up of three elements:
CCS Management Fee – which includes tendering, weekly/daily pricing, framework management and customer service/guidance. The fee is £0.002 pence per litre.
Commodity Cost – which is the standard price based on the Oil Market Journal. This is the market price and therefore no difference between supplier’s commodity prices. Commodity cost is set by CCS and is published on a weekly basis.
Supplier Margin – which was the scored element. The price that the supplier charges to cover the costs of delivery, administration and their profit etc. When the framework was tendered, suppliers submitted maximum margins which cannot be exceeded under the framework. By utilising a mini competition, it allowed suppliers to reduce their margin - thus providing the most competitive bid.
