DHL Express, Neste, Bp Enter Agreement for 211M Gallons Sustainable Aviation Fuel

Published on: 23 March 2022
by KnowESG

DHL Express announced that it entered agreements with BP and Neste to foster sustainability in its cargo operations. According to the agreement, Neste and BP will provide DHL express with 211 million gallons of sustainable aviation fuel (SAF) in the next five years.

DHL said the agreement involves two of the largest SAF deals so far. The company expects to save around 2 million tons of carbon dioxide over its aviation fuel life cycle. It is the equivalent of greenhouse gas emissions from 4,00,000 passenger vehicles in one year.

The company targets 30 per cent of all air transport to have SAF by 2030 and are part of its sustainability road map. Previously, similar SAF deals were announced in San Fransico, Amsterdam and East Midlands, England, to satisfy over 50 per cent of DHL Express' target to reach a 10 per cent SAF mix for all air transport by 2026.

DHL Group said 72 per cent of scope 1 and 2 energy consumption were given to its air fleet in 2020. According to Scott Sureddin, CEO at DHL Supply Chain, aviation is a complex area to reduce emissions.

Tyler Cole, director of carbon intelligence at FreightWaves, said: "Demand signals are crucial to scaling and de-risking innovation in sustainable freight. DHL is exhibiting climate leadership and delivering on customer requests for emission reductions. I anticipate many fleets will regret not having the foresight to lock in fuel volumes as demand for sustainable fuels outstrips supply in the near term."

John Pearson, CEO of DHL Express, said: "With every SAF deal, we are increasingly aware of the huge task that lies ahead in utilizing more sustainable solutions to help our customers. The new SAF deals with BP and Neste are milestones on this journey. Our key focus is to inspire more SAF suppliers to address the current supply gap.”

BP and Neste will use waste oils to produce SAF, which reduces greenhouse gas emissions up to 80 per cent compared to traditional jet fuel.