DHL investing €60m in Sustainable Aviation Fuel for its East Midlands Hub

A new deal with Neste underlines commitment to Sustainable Aviation: Deutsche Post DHL Group will save 70,000 tons of CO2

Key points:

  • The Group will invest around EUR 60 million to purchase Sustainable Aviation Fuel (SAF) for its East Midlands Hub in the UK until mid-2022
  • CFO Melanie Kreis: “The collaboration with Neste is part of our plan to protect the environment by pioneering climate-friendly aviation logistics” 

As part of the COP26 climate conference, Deutsche Post DHL Group has announced a further step towards introducing climate-friendly aviation logistics. The Group has agreed a new partnership with Neste to supply the DHL Express division with Sustainable Aviation Fuel (SAF) at the UK’s East Midlands Airport.

In total, DHL will purchase SAF for more than EUR 60 million by mid-2022, reducing around 70,000 tons of CO2. This is a first step for the Group to reach its ambitious 2030 target of meeting at least 30 per cent of its fuel needs in aviation through sustainable fuels. 

“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 EUR 7 billion by 2030 in clean operations, within the framework of our Sustainability Roadmap”, says Melanie Kreis, CFO Deutsche Post DHL Group and Steering Committee Member of the World Economic Forum’s Clean Skies for Tomorrow coalition. 

Neste will be the SAF’s main supplier 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. The investment will enable DHL to transport 1,500 tons of air freight weekly in a more sustainable way from the UK on around 165 European and 35 intercontinental flights.  

“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”, says John Pearson, CEO DHL Express.

Thorsten Lange, Executive Vice President Europe, Renewable Aviation at Neste, 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 decarbonizing 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.” 

Furthermore, DHL Express is 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 highly welcomes. The company already introduced SAF in San Francisco (SFO) and Amsterdam (AMS) and plans to equip more airports with SAF this year. 

Deutsche Post DHL Group is the world’s leading logistics provider. The Group connects people and markets and enables global trade. It pursues the strategic goals of being the first choice for customers, employees and investors worldwide. With responsible corporate action and a commitment to society and the environment, the Group makes a positive contribution to the world. Deutsche Post DHL Group is aiming for zero-emissions logistics by 2050.

The Group combines two strong brands: Deutsche Post is Europe’s leading postal service provider, DHL offers a comprehensive service portfolio of international express shipping, freight transport, supply chain management and e-commerce solutions. Deutsche Post DHL Group employs around 570,000 people in more than 220 countries and territories around the world. In 2020, the Group generated sales of more than 66 billion euros.

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