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COINTURK FINANCE > Business > DHL Partners with Neste to Boost Sustainable Aviation Fuel Supply in Singapore
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DHL Partners with Neste to Boost Sustainable Aviation Fuel Supply in Singapore

Overview

  • DHL and Neste expand SAF use for Singapore flights to reduce emissions.

  • New agreement contributes to DHL's sustainability strategy using substantial SAF volumes.

  • Singapore advances SAF adoption, supporting national carbon emission goals.

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DHL Express, a key player in global logistics, has struck a substantial agreement with Neste to bolster its sustainable aviation fuel (SAF) usage for flights departing from Singapore. This collaboration, which covers the provision of 7,400 metric tons (approximately 9.5 million liters) of SAF over the next year, positions DHL towards reducing its carbon footprint in air transportation. Such advancements reflect the growing need for greener aviation solutions amid global sustainability efforts.

Contents
How does the Agreement Impact DHL’s Sustainability Goals?What Role Does Singapore Play in Advancing SAF Use?

Historically, DHL has actively pursued sustainability goals, exemplified by its continuous investment in alternative fuel sources and commitment to net zero emissions by 2050. Proactive steps like this SAF procurement signify progress within the air cargo sector towards cleaner practices. Neste’s ongoing efforts to provide green fuel solutions, demonstrated through its substantial annual SAF production, further underscore DHL’s role as an industry front-runner in adopting sustainable initiatives.

How does the Agreement Impact DHL’s Sustainability Goals?

The new agreement with Neste plays a pivotal role in DHL’s comprehensive Sustainability Roadmap, which involves a ten-year, €7 billion investment in emissions-reducing initiatives. Part of this plan is expanding its zero-emissions fleet and amplifying the use of sustainable fuels across all transportation modes to over 30% by 2030. Christopher Ong, Managing Director for DHL Express Singapore, emphasized their leadership in sustainable logistics, stating,

“We are not just meeting industry standards but setting them.”

What Role Does Singapore Play in Advancing SAF Use?

Singapore’s aviation sector is aligning with global sustainability efforts, aiming to slash carbon emissions. By integrating SAF in logistics, it supports the nation’s agenda to make SAF usage mandatory for departing flights from 2026. DHL’s latest endeavor with Neste represents a significant step towards these national goals, presenting Singapore as a forward-thinking aviation hub.

Neste’s SAF, prepared at their expansive Singapore production facility, is a result of intricate renewable processing, utilizing resources such as used cooking oil and animal fat waste. With the capability to slash greenhouse gas emissions by up to 80% over its lifecycle, it showcases the potential for substantial environmental benefits compared to traditional jet fuels.

The Boeing 777 freighters stationed at Singapore Changi Airport will be among the primary beneficiaries, utilizing around 35-40% SAF in their fuel mix under the agreement. Carl Nyberg from Neste highlighted this development as a strategic enhancement of their partnership and a leap toward broader decarbonization goals for DHL.

Initiatives such as these not only reinforce DHL’s commitment to decarbonization but also highlight its proactive approach in leading the logistics sector toward meeting sustainability benchmarks. The cooperative relationship between DHL and Neste represents a move toward viable, scalable solutions in aviation’s environmental challenges.

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Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.

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