Neste signs its largest SAF-supply deal to date

Neste executive Thorsten Lange, left, and Frank Appel, CEO of Deutsche Post DHL Group (Photo: Deutsche Post DHL Group)

DHL Express and Neste Corp. have announced a major expansion of their existing relationship with a strategic collaboration that entails Neste supplying nearly 106 million gallons of sustainable aviation fuel (SAF) to DHL over the next five years. The agreement is Neste’s largest SAF deal to date and, according to Neste, one of the largest SAF agreements ever made. Neste and DHL have been working together since 2020, when DHL Express became the first cargo operator to use Neste’s SAF on flights departing from San Francisco International Airport and the Amsterdam airport. In 2021, the two companies expanded their partnership to DHL Express’ hub at the U.K.’s East Midlands airport.

“As the world’s leading logistics provider, it is our commitment to provide green and more sustainable solutions for our customers,” said Frank Appel, CEO of Deutsche Post DHL Group. “The landmark SAF deal with Neste marks a significant step for the entire aviation industry and validates the framework of our Sustainable Roadmap. 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.”

In its Sustainability Roadmap, Deutsche Post DHL Group has committed to using 30 percent of SAF blending for all air transport by 2030.

“With every SAF deal, we are increasingly aware of the huge task that lies ahead in utilizing alternative sustainable solutions to help our customers,” said John Pearson, CEO of DHL Express. “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 policymakers 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.”

With the ongoing expansion of Neste’s Singapore refinery and modification to its Rotterdam plant, Neste will have an annual SAF production capacity of nearly half a-billion gallons by the end of 2023.