Finland-headed oil refiner and renewable products producer Neste Oyj has announced that it has secured its largest sustainable aviation fuel (SAF) supply dealss to date and one of the largest SAF agreements in the aviation industry.
DHL Express and Neste have announced a significant step towards decarbonizing aviation logistics by expanding their existing cooperation with a new strategic collaboration.
In the next five years, Neste will supply DHL with approximately 320 000 tonnes (400 million litres) of “Neste MY Sustainable Aviation Fuel”. The agreement is Neste’s largest for SAF to date and one of the largest sustainable aviation fuel deals in the aviation industry.
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, said Peter Vanacker, President, and CEO of Neste.
Neste and DHL have been working together since 2020 making Neste’s SAF available for DHL’s operations. In 2020, DHL Express became the first cargo operator to use Neste’s SAF on flights departing from San Francisco International Airport (SFO) in California (CA) and Amsterdam Schiphol Airport (AMS) in the Netherlands.
In 2021 DHL and Neste extended that cooperation to provide Neste’s SAF for DHL Express’ hub at the UK’s East Midlands Airport (EMA).
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, said Frank Appel, CEO of Deutsche Post DHL Group.
DHL targets 30 percent SAF blend by 2030
In its Sustainability Roadmap, Deutsche Post DHL Group has committed to using 30 percent of SAF blending for all air transport by 2030. Neste’s SAF is produced from sustainably sourced, 100 percent renewable waste and residue raw materials.
According to Neste, its SAF can reduce greenhouse gas emissions by up to 80 percent in its neat form and over the life cycle – as calculated with established life cycle assessment (LCA) methodologies such as Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) methodology, 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. Not a day goes by without our customers asking us about low-carbon logistics solutions and partnering 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, said John Pearson, CEO DHL Express.
According to Neste, its SAF is an available solution today. As a drop-in fuel, it 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 in the Netherlands, Neste will have an annual SAF production capacity of 1.5 million tonnes (approximately 1.8 billion litres) by the end of 2023.
Today’s announcement also reflects how we are concretely helping customers reduce greenhouse gas emissions by at least 20 million tonnes 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, ended Peter Vanacker.
