Rolls-Royce publishes position paper with Microsoft on use of renewable diesel for Singapore data-center sector

Image: Rolls-Royce

Rolls-Royce’s Power Systems division has released a position paper with Microsoft highlighting the potential of hydrotreated vegetable oil (HVO), also known as renewable diesel, as a sustainable transitional fuel for backup power in data centers 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 biobased paraffinic fuel produced from waste, residual fats and oils, which can reduce lifecycle-CO2 emissions by up to 90 percent 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 centers, this provides a practical and immediately deployable solution to decarbonize backup power.

It furthermore aligns with Singapore’s green data-center roadmap (GDCR) and its longer term 2050 net-zero targets.

The position paper identifies priorities to enable full HVO adoption, including harmonization 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, the president of stationary-power solutions at Rolls-Royce Power Systems. “HVO is a practical step to decarbonize critical infrastructure and provides an immediately deployable lever to reduce emissions for the potential-rich data-center 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.”

Giovanni Spadaro, the president of global markets for Rolls-Royce Power Systems, added, “As the regional digital economy accelerates, data centers have become a critical growth driver for both Singapore and Asia. Rolls-Royce Power Systems is committed to unlocking its potential via carbon-efficient fuel solutions. This can serve as a sustainable source of power that provides growth and is aligned with key national goals such as the GDCR. It is vital that we continue working with our partners, including Microsoft, to create the necessary conditions that can make this a reality.”

Kavickumar Muruganathan, cloud ESG planning director for Microsoft in the Asia-Pacific region, said, “This paper underscores our commitment to fostering innovation in low-carbon energy sources. By aligning with Microsoft’s global 2030 sustainability ambitions, we are dedicated to driving solutions that not only meet our current energy needs but also pave the way for a carbon-negative future. Our collaboration in this highlights our resolve to lead the charge in decarbonizing at scale and promoting low-carbon fuels across the region.”