DHL pledges €80m investment for biomethane production

DHL Supply Chain has revealed a €80m investment plan for a specialised biomethane production facility set to be established in Cork, in a bid to offer a decarbonisation options for trucks in Ireland.

DHL pledges €80m investment for biomethane production

Biomethane, a renewable gas with carbon-neutral potential, will serve as the primary fuel source for 150 trucks at the new facility.

The biomethane production site will be managed by Stream BioEnergy and will process 90,000 tonnes of industry and consumer food waste annually, diverting it from landfills.

This is expected to result in an annual reduction of 15,000 tonnes in carbon emissions, equivalent to more than 38 million miles driven by an average passenger vehicle running on petrol.

To support the initial vehicle rollout and during the production ramp-up, DHL will subsidise biomethane from other sources.

Once the new facility is fully operational, DHL will operate 92 locally fuelled biomethane trucks throughout Tesco’s nationwide network.

DHL Supply Chain Ireland’s managing director Ciaran Foley said: “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.”

Biomethane deployment at scale requires no upgrades to Ireland’s existing gas grid, making it a flexible and cost-effective means of decarbonising commercial road transport, according to the company.

Tesco Ireland’s retail and distribution director Ian Logan said: “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 net-zero in our value chain by 2050, and indeed in our own operations by 2035.”

DHL has plans to extend its decarbonisation efforts to other sectors, including consumer, technology, aviation, life sciences, and healthcare.

Last month, Tesco announced its SBTi approved science-based targets which encompass an 85% reduction in absolute Scope 1 and 2 emissions originating from its operations by 2030, using 2015 as the reference year, and a 55% reduction in absolute Scope 3 emissions stemming from energy and industrial sources.

To decarbonise transportation, the company has set goals to achieve a fully electric home delivery fleet by 2030; to introduce electric heavy-good vehicles (HGVs) within its transport system; and to opt for rail freight whenever feasible as a low-emission alternative to road transportation.

Comments (1)

  1. Rob Heap says:

    The hope is that source segregated food waste in the UK will enable more biomethane to be produced and used in HGV’s. This will provide a better lifecycle carbon reduction solution than electric HGV’s. Other HGV fleet operators should be joining DHL and other operators who already run some or all of their fleet on biomethane, thanks to CNG Services, Gasrec and others.

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