Neste, DHL Group tighten collaboration to reduce logistics emissions

Photo: DHL Group

Renewable diesel and sustainable aviation fuel (SAF) producer Neste Corp. announced Feb. 5 that it and DHL Group have agreed to jointly evaluate how Neste’s renewable solutions can support DHL in its decarbonization targets in air and road transportation. 

DHL Group aims to achieve net-zero emission of greenhouse-gases (GHG) in its logistics by 2050.

Interim targets by 2030 include electrifying two-thirds of last-mile delivery vehicles and increasing the share of more sustainable fuels across all transportation modes to more than 30 percent, which includes the use of SAF.

As a leading producer of renewable diesel and SAF, Neste would support DHL Group 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 tons of neat (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, DHL Group and Neste 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,” said Yin Zou, DHL Group’s executive vice president of corporate development.

“By closely collaborating with a leading producer of renewable fuels, we can further advance on our interim targets,” Zou said. “Together with Neste, we will develop innovative solutions that support our own sustainability goals and eventually also those of our customers.”

Carl Nyberg, Neste’s senior vice president of commercial renewable products, added, “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.”

The companies have already been working successfully together for several years, for example in the field of SAF deliveries.

Additionally, Neste and DHL Group supported the International Sustainability and Carbon Certification to pioneer and test the ISCC Credit Transfer System.

The system enables airlines, logistics providers and end customers such as corporations to credibly report the emission reductions achieved using SAF for decreasing their carbon footprint in air travel and freight transport.