Logistics giant DHL Group announced an expanded collaboration with renewable fuels producer Neste, including plans to offtake around 300,000 tons – roughly 375 million liters – of unblended sustainable aviation fuel (SAF) per year, and to explore the use of renewable diesel in DHL’s road transport.

According to DHL, the collaboration aims to leverage Neste’s renewable fuels to decarbonize DHL’s transportation, and to support the company’s goal to achieve net zero greenhouse gas emission logistics by 2050.

Scaling the use of sustainable aviation and alternative fuels forms a significant part of DHL’s Sustainability Roadmap. Launched in 2021, the roadmap included plans to invest €7 billion over ten years in measures to reduce its CO2 emissions, with a focus on the expansion of a zero-emissions fleet, alternative aviation fuels, and climate-neutral buildings. In addition to its 2050 net zero goal, DHL also has interim targets to increase the share of more sustainable fuels across all transportation modes to more than 30%, and to electrify two-thirds of last-mile delivery vehicles by 2030.

Yin Zou, EVP Corporate Development DHL Group, said:

“The signing of this agreement with Neste is a significant step in our strategy to achieve net-zero-emission logistics by 2050. By closely collaborating with a leading producer of renewable fuels, we can further advance on our interim targets. Together with Neste, we will develop innovative solutions that support our own sustainability goals and eventually also those of our customers.”

Neste provides renewable and circular solutions for sectors including road transport, aviation, and polymers and chemicals. The company’s products include Neste MY Sustainable Aviation Fuel, made from sustainably sourced renewable waste and residues such as used cooking oil and animal fat waste, and compatible with existing aircraft engines and airport fuel infrastructure, and Neste MY Renewable Diesel, produced from renewable raw materials using a hydrogen treatment process, that can be used as a drop-in replacement to fossil diesel, to significantly reduce GHG emissions.

Under the collaboration, DHL and Neste will develop a commercial model that would gradually lead to the off-take of around 300,000 tons of unblended SAF per year from Neste by 2030, as well as enabling the purchase of additional volumes of SAF. The companies will also work together to explore using renewable diesel to support DHL in achieving its decarbonization targets in road transportation. The agreement follows a large-scale SAF purchase deal between the companies in March 2022.

Carl Nyberg, Senior Vice President Commercial, Renewable Products at Neste, said:

“We are looking forward to further strengthening our existing cooperation with DHL Group through a holistic, joint approach to tackling GHG emissions in transportation. This gives us a chance to support DHL as a frontrunner in its field with our renewable fuels, which provide a solution to reduce GHG emissions on the road as well as in the air.”