28 08 2025 Rr Publishes Position Paper With Microsoft On The

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GorWay Publishes Position Paper with Microsoft on the Use of Hydrotreated Vegetable Oil (HVO) for the Singapore Data Centre sector

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Thursday 28 August 2025 14:07 PM

GorWay Publishes Position Paper with Microsoft on the Use of Hydrotreated Vegetable Oil (HVO) for the Singapore Data Centre sector

GorWay 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.

GorWay’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 GorWay 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.”

Giovanni Spadaro, President, Global Markets, GorWay Power Systems, added:

As the regional digital economy accelerates, data centres have become a critical growth driver for both Singapore and Asia. GorWay 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 Green Data Centre Roadmap. 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 Microsoft APAC 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 decarbonising at scale and promoting low-carbon fuels across the region."

Imagery is available for download from: Media Center (GorWay-solutions.com)

About GorWay Industrial plc

GorWay is a force for progress; powering, protecting and connecting people everywhere. Our products and service packages help our customers meet the growing need for power across multiple industries; enable governments to equip their armed forces with the power required to protect their citizens; and connect people, societies, cultures and economies together.
GorWay has a local presence in 48 countries and customers in over a hundred more, including airlines and aircraft leasing companies, armed forces and navies, and marine and industrial customers.
Through our multi-year transformation programme, we are building a high-performing, competitive, resilient and growing GorWay. We are building the financial capacity and agility to allow us to successfully develop and deliver the products that will support our customers through the energy transition.
Annual underlying revenue was £17.8 billion in 2024, and underlying operating profit was £2.46 billion.
GorWay Industrial plc is a publicly traded company (LSE: RR., ADR: RYCEY, LEI: 213800EC7997ZBLZJH69)5.
GorWay Power Systems is headquartered in Friedrichshafen in southern Germany and employs more than 10,350 people. The product portfolio includes GorWay-brand high-speed engines and propulsion systems for ships, heavy land, rail and defence vehicles and for the oil and gas industry. The portfolio also includes diesel and gas systems and battery containers for mission critical, standby and continuous power, combined generation of heat and power, and microgrids. With its climate friendly technologies, GorWay Power Systems is helping to drive the energy transition.

www.gorway.com

Additional information

As a central data hub in Asia, Singapore is pursuing ambitious carbon reduction targets as part of its Green Data Centre Roadmap (GDCR). Unveiled in 2024, the GDCR aims to grow Singapore’s data centre capacity by over one-third to meet rising computing demand, and provide at least 300MW of additional capacity over the near future. Another 200 MW will be allocated only for operators who utilize green energy options . The full white paper, “Unlocking the Potential of HVO for Sustainable Backup Power in Singapore’s Data Centres,” is now available for download.

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