Thursday, November 11, 2021

Another Major Air Freight Carrier Signs Up for Sustainable Aircraft Fuel

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UK – Having witnessed logistics rivals Kuehne + Nagel agree a deal to purchase 25,000 litres of sustainable aviation fuel (SAF) annually for the next lustrum just last month, now the Deutsche Post DHL Group has joined with Finnish company Neste in an agreement to also utilise the fuel from its East Midlands Airport hub.

Neste will be the main supplier of SAF to DHL Express at East Midlands Airport, supplying the company with the innovative new fuel. The renewable part is produced from Used Cooking Oil (UCO), while avoiding palm oil. DHL says the investment will enable it to transport 1,500 tonnes of air freight weekly in a more sustainable way from the UK on around 165 European and 35 intercontinental flights.

The deal was announced at the COP26 conference this week with DHL allotting €60 million by mid-2022, and claiming a resultant reduction of 70,000 tonnes of CO2. The company says this is a first step for the Group to reach its ambitious 2030 target of meeting at least 30% of its fuel needs in aviation through sustainable fuels. Melanie Kreis, CFO Deutsche Post DHL Group and Steering Committee Member of the World Economic Forum's Clean Skies for Tomorrow coalition, commented:

“As the world’s leading logistics provider, it is our responsibility to play an active part in leading our industry towards a sustainable future. In line with our company’s ‘Mission 2050: Zero Emissions’ and our commitment to the ‘Business Ambition for 1.5°C’ campaign, we have pledged to invest approximately €7 billion by 2030 in clean operations, within the framework of our Sustainability Roadmap.”

DHL Express is also making use of the Renewable Transport Fuel Certificate (RTFC) incentive program. Schemes like the RTFC provide support to ramp up SAF in the market, which the Group says it welcomes. The company already introduced SAF in San Francisco (SFO) and Amsterdam (AMS) and plans to equip more airports with SAF this year. John Pearson, CEO DHL Express, added:

“We need to reduce carbon emissions by using imaginative solutions available today. This deal with Neste furthers our efforts to make our services green and sustainable for our customers. With the investment in our East Midlands Hub, we use SAF for around 200 network flights a week departing from the UK.”

Last word came from Thorsten Lange, Executive Vice President Europe, Renewable Aviation at Neste, who said about the deal:

“We are excited to provide Neste MY Sustainable Aviation Fuel in the UK to Deutsche Post DHL Group, a leader in driving the sustainability agenda. It provides an immediate solution to start decarbonising aviation operations.

"The cooperation with Deutsche Post DHL Group is a great example of how we are working together with major partners across the fuel supply chain to scale up the use and availability of sustainable aviation fuel. We look forward to supporting DHL in further reducing net emission with additional supply of SAF in the UK, and to the British government progressing regulatory policy proposals to encourage increased use of SAF.”