23/03/2022 – Sustainability / Aviation / Neste / DHL / Fuel / Logistics
Neste and DHL Express announce one of the largest ever sustainable aviation fuel deals
DHL Express and Neste have announced a significant step towards decarbonising aviation logistics by expanding their existing co-operation with a new strategic collaboration. In the next five years, Neste will supply DHL with approximately 320,000 tons (400 million litres) of Neste MY Sustainable Aviation FuelTM.
The agreement is Neste’s largest for Sustainable Aviation Fuel (SAF) to date and one of the largest SAF agreements in the aviation industry.
Nasdaq Helsinki listed Neste and leading global logistics brand DHL have been working together since 2020 to make Neste MY Sustainable Aviation Fuel available for DHL’s operations. In 2020, DHL Express became the first cargo operator to use Neste MY Sustainable Aviation Fuel on flights departing from San Francisco International Airport and Amsterdam Airport. In 2021, DHL and Neste extended that co-operation to provide Neste’s SAF for DHL Express’s hub at the UK’s East Midlands Airport.
Acting on aviation-related emissions
“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,” remarked Peter Vanacker, President and CEO of Neste.
“Today’s announcement also reflects how we are concretely helping customers reduce greenhouse gas emissions by at least 20 million tons 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,” he continued.
“A significant step for the entire aviation industry”
“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,” commented Frank Appel, CEO of Deutsche Post DHL Group, DHL’s mother company, which generated revenues of more than €81 billion in 2021 and aims to achieve zero-emissions logistics by 2050. “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,” he added.
In its Sustainability Roadmap, Deutsche Post DHL Group has committed to using 30 per cent of SAF blending for all air transport by 2030. Neste’s SAF is produced from sustainably sourced, 100-per-cent renewable waste and residue raw materials. It can reduce greenhouse gas emissions by up to 80 per cent – in its neat form and over the life cycle – 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 utilising alternative sustainable solutions to help our customers. Not a day goes by without our customers asking us about low-carbon logistics solutions and to partner them in our joint aspiration to be part of creating a more sustainable future,” observed John Pearson, CEO DHL Express. “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 policy-makers to set the right framework to accelerate market ramp up of SAF in the EU and worldwide, including an accounting mechanism that allows flexible SAF purchases and usage.”
A drop-in solution available today
Neste MY Sustainable Aviation Fuel 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 on-going expansion of Neste’s Singapore refinery and modification to its Rotterdam refinery, Neste will have an annual production capacity for sustainable aviation fuel of 1.5 million tons (approximately 1,875 billion litres) by the end of 2023.
The world’s leading producer of sustainable aviation fuel and renewable diesel, and a frontrunner in developing chemical recycling to combat the plastic waste challenge, Neste's revenue stood at €15.1 billion in 2021.