Air bp is to supply DHL Express with sustainable aviation fuel (SAF) until 2026 as part of a new strategic collaboration with the global logistics company.
(left to right) Martin Thomsen Air bp SVP and Frank Appel CEO Deutsche Post DHL Group.
Courtesy Air bp
The bp agreement is one of two deals comprising the largest sustainable aviation fuel (SAF) deals in aviation to date, with a combined volume of more than 800 million litres of SAF. The other supplier, entering in to separate agreement with DHL and making up the total volume, is Neste. In the next five years, Neste will supply DHL with approximately 320,000 tons (400 million litres) of Neste MY Sustainable Aviation Fuel.
In its Sustainability Roadmap, Deutsche Post DHL Group has committed to using 30% of SAF blending for all air transport by 2030 and bp will provide SAF produced from waste oils. Such SAF from wastes and residues can provide greenhouse gas emission reductions of up to 80% over its lifecycle compared with the conventional jet fuel it replaces, thereby reducing DHL’s carbon footprint. DHL Express transports more than 480 million urgent documents and packages annually across its global network of 220 countries and territories.
Martin Thomsen, SVP, Air bp, said: “We are proud to complete this important deal which further deepens our strategic relationship with Deutsche Post DHL.
"As bp transitions to an integrated energy company, we are leveraging our value chain encompassing feedstocks, global production, logistics and airport infrastructure. Not many companies also have the trading and commercial expertise in SAF, needed to design and deliver solutions for complex customer needs.
“Our ambition is to work even more closely with airports and airlines on decarbonisation options and we are promoting SAF at pace to support global aviation to realise its lower carbon ambitions.”
Peter Vanacker, President and CEO of Neste said: “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.
“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.”
“As the world’s leading logistics provider, it is our commitment to provide green and more sustainable solutions for our customers. The landmark SAF deals with bp and Neste mark a significant step within the aviation industry and validate the framework of our Sustainable Roadmap”, said Frank Appel, CEO Deutsche Post DHL Group. “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.”
John Pearson, CEO DHL Express said: “With every SAF deal, we are increasingly aware of the huge task that lies ahead in utilizing 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.
“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.”
Air bp understands from DHL that these deals, together with the previously announced SAF introduction in the DHL network in San Francisco (SFO), East Midlands (EMA) and Amsterdam (AMS), will exceed 50% of DHL Express' target to reach 10% SAF blending for all air transport by 2026.