DHL Express and Neste have announced an expansion of their existing partnership, with the supply of approximately 320,000 tons of Neste MY Sustainable Aviation Fuel over the next five years. The agreement is Neste’s largest for Sustainable Aviation Fuel (SAF) to date and one of the largest SAF agreements in the aviation industry.
Neste and DHL have been working together since 2020 making Neste MY Sustainable Aviation Fuel available for DHL’s operations. In 2020, DHL Express became the first cargo operator to use Neste MY Sustainable Aviation Fuel on flights departing from San Francisco International Airport and Amsterdam Airport. In 2021 DHL and Neste extended that cooperation to provide Neste’s SAF for DHL Express’ hub at the UK’s East Midlands airport.
Peter Vanacker, President and CEO of Neste, said: “This milestone agreement, our largest ever for SAF, underlines the growing need and urgency – as well as the commitment – to act on aviation-related emissions. We are pleased to take this significant step together with DHL, which shows the joint ambitions of both companies and is further progress in our journey towards creating a healthier planet for our children.
“Today’s announcement also reflects how we are concretely helping customers reduce greenhouse gas emissions by at least 20 million tons of CO2 equivalent annually by 2030. 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 renewable raw materials and solutions, to reach that goal.”
Frank Appel, CEO of Deutsche Post DHL Group, said: “As the world’s leading logistics provider, it is our commitment to provide green and more sustainable solutions for our customers. The landmark SAF deal with Neste marks a significant step for the entire aviation industry and validates 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.”
In its Sustainability Roadmap, Deutsche Post DHL Group has committed to using 30 per cent of SAF blending for all air transport by 2030. Neste says that its SAF is produced from sustainably sourced, 100 per cent renewable waste and residue raw materials. It can reduce greenhouse gas emissions by up to 80 per cent, in its neat form and over the life cycle, compared to the fossil jet fuel it replaces, thereby significantly reducing DP-DHL’s carbon footprint.
“With every SAF deal, we are increasingly aware of the huge task that lies ahead in utilizing alternative sustainable solutions to help our customers,” said John Pearson, CEO DHL Express. “Not a day goes by without our customers asking us about low-carbon logistics solutions and to partner them in our joint aspiration to be part of creating a more sustainable future.
“The new SAF deal with Neste is a milestone 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 policymakers to set the right framework to accelerate the market ramp-up of SAF in the EU and worldwide, including an accounting mechanism that allows flexible SAF purchases and usage.”
As a drop-in fuel, SAF can be used with existing aircraft engines and airport fuel infrastructure, requiring no extra investment to them. With the ongoing expansion of Neste’s Singapore refinery and modification to its Rotterdam refinery, Neste aims to have an annual production capacity for sustainable aviation fuel of 1.5 million tonnes by the end of 2023.