DHL Invests €80M in Irish Biomethane Production

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by KnowESG
KnowESG_DHL Invests €80M in Irish Biomethane Production
Image courtesy of DHL

DHL Supply Chain has unveiled an ambitious plan to introduce trucks fueled by biomethane, backed by an €80 million investment in a dedicated biomethane production facility located in Cork, operated by Stream BioEnergy.

Biomethane, a renewable gas capable of achieving carbon neutrality, is at the heart of this endeavour. This innovative facility will cater to a fleet of up to 150 trucks, resulting in an annual carbon reduction of 15,000 tonnes, equivalent to the environmental impact of more than 38 million miles driven by an average petrol-powered passenger vehicle.

In a collaborative effort to address Ireland's transportation decarbonisation goals, DHL has partnered with the renowned grocery retailer Tesco Ireland. To kickstart this initiative and facilitate the initial vehicle rollout, DHL will subsidise the supply of biomethane from external sources until the new production facility reaches full capacity. Subsequently, DHL will operate a fleet of 92 biomethane-powered trucks across Tesco's nationwide network.

DHL is poised to revolutionise the sustainable transformation of Ireland's retail transportation sector and has aspirations to extend this impact across all sectors it operates in, including consumer goods, technology, aviation, life sciences, and healthcare. The scale of this initiative promises to be a transformative force within Ireland's transportation industry.

Situated in Little Island, Cork, the biomethane production site, owned and managed by Stream BioEnergy, will process an impressive 90,000 tonnes of industrial and consumer food waste annually, diverting it from landfills. What sets biomethane apart is its capacity to be carbon neutral without necessitating upgrades to Ireland's existing gas infrastructure, making it a flexible and cost-effective solution for decarbonising commercial road transport.

This project underscores DHL's unwavering commitment to delivering sustainable logistics solutions, aligning seamlessly with the company's global GoGreen agenda. The introduction of biomethane-fueled trucks, coupled with investments in domestic biomethane production, will significantly contribute to DHL's overarching goal of achieving net-zero emissions by 2050.

Ciaran Foley, Managing Director of DHL Supply Chain in Ireland, expressed pride in bolstering renewable energy production within Ireland, emphasising the partnership with Tesco as a pivotal step towards their shared objective of reaching net-zero emissions. He highlighted the crucial role DHL plays in helping its customers achieve their sustainability goals, particularly in optimising transport networks through the adoption of alternative fuels.

Ian Logan, Retail and Distribution Director at Tesco Ireland emphasised the importance of enhancing efficiency and reducing environmental impact in their extensive distribution network.

The transition to cleaner fuel within their value chain, replacing their current HGV transport fleet that conducts over 2,000 weekly trips serving 166 stores nationwide, represents a vital component in their journey towards achieving net-zero emissions.

He praised DHL's commitment to renewable transport solutions, underscoring Tesco's own dedication to sustainable practices and emissions reduction, with a shared aspiration of achieving net zero across their value chain by 2050 and within their operations by 2035.

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Source: DHL

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