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Issue - meetings

Waste Vehicles Fuel Arrangements

Meeting: 16/06/2026 - Cabinet (Item 10)

10 WASTE VEHICLES FUEL ARRANGEMENTS pdf icon PDF 136 KB

REPORT OF THE DIRECTOR – ENVIRONMENT

 

Approves use of a HVO mix for the Council’s large waste vehicles, that limits the additional cost to the Council (of using HVO over diesel) to approximately £5,000 per month from 1 July 2026 to 31 March 2027. This would be subject to a minimum HVO use of 20%, unless it became impossible to obtain HVO fuel.

Additional documents:

Decision:

RESOLVED: That Cabinet approved use of a HVO mix for the Council’s large waste vehicles, that limits the additional cost to the Council (of using HVO over diesel) to approximately £5,000 per month from 1 July 2026 to 31 March 2027. This would be subject to a minimum HVO use of 20%, unless it became impossible to obtain HVO fuel.

 

REASONS FOR DECISION:

 

(1)  The Council set a budget in January 2025 to use Hydrotreated Vegetable Oil in the vehicles (above 3.5 tonnes) in the waste and street cleansing contract. The budget set aside at the time (£40k per year ongoing) was expected to be sufficient to use 100% HVO in those vehicles, although the budget decision did reference that it would be possible to use incremental levels of HVO depending on cost. Inflation added to the budget means that £40k budget is now £42k (for 2026/27).

 

(2)  Global events have increased the cost of fuel, with an even more substantial increase in the cost of HVO. This recommendation manages the cost impact on the Council during this period of uncertainty. Overall, the Council remains committed to its Sustainability Strategy and the carbon emission targets set within that strategy.

Minutes:

Audio recording – 54 minutes 32 seconds

 

Councillor Amy Allen, as Executive Member for Environment, presented the report entitled ‘Waste Vehicles Fuel Arrangements’ and advised that:

 

·         The Council had moved to using Hydrogenated Vegetable Oil (HVO) fuel as a low emission alternative to diesel to support carbon reduction commitments, but global events had increased the price of both.

·         HVO was currently 40p more expensive than diesel and if 100% HVO use was continued, there would be an estimated overspend of roughly £15K a month.

·         The proposal would cap the use of HVO in overall fuel mix, which would still achieve some emission reduction targets while limiting financial impacts.

·         This was an interim measure that they would keep under review, with the aim to return to 100% HVO fuel mix once market conditions improved.

 

Councillor Amy Allen proposed the recommendations in the report, and this was seconded by Councillor Daniel Allen.

 

As part of the debate, Councillor Ian Albert highlighted that this was a sensible and practical approach given international circumstances, and it was important for them to use HVO to some extent while recognising the financial implications as set out in the report.

 

Having been proposed and seconded and, following a vote, it was:

 

RESOLVED: That Cabinet approved use of a HVO mix for the Council’s large waste vehicles, that limits the additional cost to the Council (of using HVO over diesel) to approximately £5,000 per month from 1 July 2026 to 31 March 2027. This would be subject to a minimum HVO use of 20%, unless it became impossible to obtain HVO fuel.

 

REASONS FOR DECISION:

 

(1)  The Council set a budget in January 2025 to use Hydrotreated Vegetable Oil in the vehicles (above 3.5 tonnes) in the waste and street cleansing contract. The budget set aside at the time (£40k per year ongoing) was expected to be sufficient to use 100% HVO in those vehicles, although the budget decision did reference that it would be possible to use incremental levels of HVO depending on cost. Inflation added to the budget means that £40k budget is now £42k (for 2026/27).

 

(2)  Global events have increased the cost of fuel, with an even more substantial increase in the cost of HVO. This recommendation manages the cost impact on the Council during this period of uncertainty. Overall, the Council remains committed to its Sustainability Strategy and the carbon emission targets set within that strategy.