To further strengthen their collaboration on reducing emissions in logistics, Germany-headed global logistics major DHL Group and Finland-headed oil refiner and renewable products major Neste Oyj have agreed to jointly evaluate how Neste’s renewable solutions such as renewable diesel, aka HVO100, and sustainable aviation fuel (SAF) can support DHL in its decarbonization targets in air and road transportation.
DHL Group aims to achieve net-zero greenhouse gas (GHG) emission logistics by 2050.
Interim targets by 2030 include electrifying two-thirds of last-mile delivery vehicles and increasing the share of more sustainable fuels, including sustainable aviation fuel (SAF), across all transportation modes to more than 30 percent.
As a leading producer of renewable diesel and SAF, Neste would support DHL in achieving these goals.
To enable DHL Group to achieve its air transportation targets, the parties will develop a commercial model that would gradually lead to the offtake of around 300,000 tonnes of neat, i.e. unblended SAF per year from Neste by DHL Group by 2030 and enable the sale and purchase of additional volumes of SAF.
At the same time, the companies will work together to explore using renewable diesel to support DHL in achieving its decarbonization targets in road transportation.
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 our interim targets. Together with Neste, we will develop innovative solutions that support our own sustainability goals and eventually also those of our customers, said Yin Zou, EVP Corporate Development at DHL Group.
Building on existing collaboration
The companies have been working successfully together for several years, for example, SAF deliveries.
Additionally, Neste and DHL Group supported the International Sustainability & Carbon Certification (ISCC) to pioneer and test the ISCC Credit Transfer System, which enables airlines, logistics providers, and end customers, such as corporations, to credibly report the emission reductions achieved using SAF for reducing their carbon footprint in air travel and freight transport.
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, said Carl Nyberg, SVP of Commercial, Renewable Products at Neste.
