DHL Commits $85 Million Toward Biomethane Production, Decarbonizing Fleet

DHL truck powered by renewable energy source, biomethane

(Credit: DHL)

by | Sep 26, 2023

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DHL Supply Chain has invested $85 million to operate biomethane-fueled trucks and source biomethane by building a new production facility in Cork, Ireland.

Overall, the new facility, which will be run by Stream Bioenergy, will provide enough fuel for 150 trucks and has the capacity to reduce carbon emissions by 15,000 tons annually. As a part of the new agreement, DHL has partnered with Tesco Ireland, which will use 92 of the biomethane-fueled vehicles in its network across the country.

Biomethane is a low-emission, renewable natural gas made from industry and consumer food waste that would otherwise end up in a landfill. The fuel therefore operates using a circular production model, both diverting waste and creating a renewable fuel. The fuel has been identified as a flexible, cost-effective route for decarbonizing commercial road transport in Ireland because it does not require structural upgrades to the country’s gas grid.

This new investment contributes to DHL’s GoGreen agenda, which includes a target of net-zero emissions by 2050 and provides green logistics tools and sustainable fuel alternatives for its clients.

“We are extremely proud to be enhancing renewable energy production here in Ireland and our collaboration with Tesco marks a significant step in our shared journey towards achieving net-zero emission,” said Ciaran Foley, managing director of DHL Supply Chain, Ireland. “Our customers’ transport networks are a vital focus area when looking at how they can achieve their overall sustainability goals so by making alternative fuels a reality we can really prove our value as a strategic partner.”

DHL’s GoGreen Solutions Decarbonize Supply Chain Operations

Both in Ireland and in the U.S., DHL has been working to decarbonize its fleet. In the U.S. DHL recently partnered with PowerFlex to increase EV charging structure across the country to supplement the company’s increasingly more electric fleet.

DHL also helps companies report their emissions by optimizing supply chain design. The company’s “GoGreen logistics” offerings include evaluation of carrier selection, route optimization, modal shifts, and consolidation. When companies can identify areas causing the most emissions along their supply chain, they may then identify where to begin decarbonization efforts.

In partnering with Tesco, DHL’s support for biomethane fuel allows the company to work toward decarbonizing its expansive fleet.

“We have one of the most sophisticated distribution networks in the country, and improving its efficiency and environmental impact will play an important role in our journey to net zero,” said Ian Logan, Tesco Ireland’s retail and distribution director. “Our current HGV transport fleet makes over 2,000 trips weekly, serving our growing network of 166 stores nationwide, so moving to a cleaner fuel in our value chain will play a vital role in achieving this.”

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