DHL Supply Chain has announced plans to begin operating biomethane trucks with an investment worth EUR 80 million into a dedicated biomethane production plant in Cork, run by Stream BioEnergy. The new facility will provide fuel for up to 150 trucks, resulting in an annual carbon reduction of 15,000 tons, the equivalent of more than 38 million miles driven by an average gasoline-powered passenger vehicle.
As part of a shared commitment to decarbonizing Ireland’s transport network, DHL has joined forces with grocery retailer Tesco Ireland. To support the initial vehicle roll-out and whilst production ramps up, DHL will subsidize the biomethane from other sources. Once the new facility is fully functioning, DHL will operate 92 locally fueled biomethane trucks across Tesco’s country-wide network.
DHL is fundamentally decarbonizing a significant proportion of the retail transport sector in Ireland, and they intend to continue to roll this out to all the other sectors in which they operate; consumer, technology, aviation, life sciences and healthcare. Given the scale of the rollout, this will be a game changer for the transportation industry in Ireland.
The biomethane production site at Little Island, Cork, owned by Stream BioEnergy, will process 90,000 tons of industry and consumer food waste per annum which could otherwise have been sent to landfill. The deployment of biomethane at scale requires no infrastructural upgrades to Ireland’s existing gas grid and given its capacity to be carbon neutral, biomethane is a flexible, cost-effective way to decarbonize commercial road transport.
The project reflects DHL’s commitment to delivering sustainable logistics solutions and the company’s global GoGreen agenda. The deployment of biomethane trucks, as well as investment in domestic biomethane energy production will play an important part in helping the company achieve its target of net-zero emissions by 2050.
“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 emissions. 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,” said Managing Director of DHL Supply Chain, Ireland, Ciaran Foley.
Tesco Ireland’s Retail and Distribution Director Ian Logan also commented: “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. 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.”
“DHL’s credentials in leveraging renewable transport solutions are complimented by our own strong commitment to embracing sustainable practices and driving down our emissions. We are both committed to promoting collective environmental objectives; and to advance our ambition to achieve carbon neutrality in our value chain by 2050, and indeed in our own operations by 2035,” he added.
Source: DHL UK