DHL Express is partnering with oil giants BP and Neste on two of the largest sustainable aviation fuel (SAF) deals in the industry.
It will provide more than 800 million litres of SAF to DHL over the next five years to help decarbonise aviation logistics.
DHL has already introduced SAF in its San Francisco, East Midlands and Amsterdam networks. The new deal will see the company achieve more than half its target to reach 10% SAF blending for all air transport by 2026.
DHL expects the strategic collaborations to save around two million tonnes of carbon dioxide emissions over the aviation fuel lifecycle. This is equivalent to the annual greenhouse gas emissions of around 400,000 passenger cars, it says..
The freight giant transports more than 480 million urgent documents and packages annually across its global network of 220 countries and territories.
The company says the 800 million litres of SAF would be enough to operate Boeing 777s for around 12 years on the route between Cincinnati, USA and Leipzig, Germany which sees around 1000 annual DHL flights.
Deutsche Post DHL Group chief executive Frank Appel says the company is committed to providing “green and more sustainable solutions” for its customers.
“The landmark SAF deals with BP and Neste mark a significant step within the aviation industry and validate the framework of our sustainable roadmap.
“Using SAF is currently one of the aviation industry’s key routes to reducing CO2 emissions over the aviation fuel lifecycle with currently available aircraft types,” Appel says.
BP senior vice president Martin Thomsen says the deal strengthens BP’s strategic relationship with DHL.
“As BP transitions to an integrated energy company, we are leveraging our value chain encompassing feedstocks, global production, logistics and airport infrastructure.
“Not many companies also have the trading and commercial expertise in SAF, needed to design and deliver solutions for complex customer needs.
“Our ambition is to work even more closely with airports and airlines on decarbonisation options, and we are promoting SAF at pace to support global aviation to realize its lower carbon ambitions,” Thomsen says.
In its Sustainability Roadmap, DHL has committed to using 30% of SAF blending for all air transport by 2030.
Both suppliers will provide SAF produced from waste oils. Such SAF from wastes and residues can provide greenhouse gas emission reductions of up to 80% over its lifecycle compared with the conventional jet fuel it replaces.
In order to ensure that the fuel is sustainable, the use of feedstock which competes with food production or causes indirect land-use change is being avoided, the company says.
DHL Express chief executive John Pearson says customers are asking about low-carbon logistics solutions every day.
“With every SAF deal, we are increasingly aware of the huge task that lies ahead in utilising 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.
“At the same time, we are calling on policy makers to set the right framework to accelerate market ramp up of SAF in the EU and worldwide, including an accounting mechanism that allows flexible SAF purchases and usage,” Pearson says.
Neste president and chief executive Peter Vanacker says the deal represents the “growing need and urgency” to act on aviation emissions.
“SAF is a cornerstone of the aviation industry’s efforts to achieve net-zero emissions by 2050. It requires a joint effort across the aviation value chain with all stakeholders, using all available raw materials and solutions, to reach that goal,” Vanacker says.
