DHL has committed to a 10-year agreement with Stream Bioenergy for its biomethane production facility, creating 130 jobs and supporting a reduction of 15,000 tonnes of carbon emissions per year
The logistics provider is leading the industry change by announcing a partnership with Tesco Ireland to launch the first phase of the biomethane project, decarbonising a significant portion of Ireland's retail transport sector.
DHL Supply Chain today announced plans to start operating biomethane-fueled trucks, with an investment worth €80 million to establish a dedicated biomethane production facility in Cork, to be operated by Stream Bioenergy. Biomethane is a renewable gas that is carbon neutral. The new facility will fuel up to 150 trucks and reduce carbon emissions by 15,000 tons per year, equivalent to more than 38 million miles traveled by an average gasoline-powered passenger car.
As part of a shared commitment to decarbonise Ireland's transport network, DHL has joined forces with leading grocery retailer Tesco Ireland. To support the initial vehicle rollout and ramp-up in production, DHL will subsidize biomethane from other**. Once the new facility is fully operational, DHL will operate 92 locally fueled biomethane trucks across Tesco's national network.
DHL is fundamentally decarbonising a significant part of Ireland's retail transport industry and they intend to continue to roll it out to all other industries 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 Irish transport industry.
Stream Bioenergy's owned and operated biomethane site on Cork Island will process 90,000 tonnes of industrial and consumer food waste annually that could otherwise end up in landfills. Large-scale deployment of biomethane does not require infrastructure upgrades to Ireland's existing gas network and, given its ability to be carbon neutral, is a flexible, cost-effective way to decarbonise commercial road transport.
The project exemplifies DHL's commitment to providing sustainable logistics solutions and the company's global GoGreen agenda. The deployment of biomethane trucks and investment in domestic biomethane energy production will play an important role in helping the company achieve its 2050 net-zero emissions target.
Ciaran Foley, Managing Director of DHL **Chain Ireland, said: "We are very proud to be strengthening renewable energy production in Ireland and our partnership with Tesco marks a significant step in our shared journey to net zero emissions. Our customers "have a critical focus area for transportation networks when considering how to achieve their overall sustainability goals, so by making alternative fuels a reality, we can truly demonstrate our value as a strategic partner." ”
Ian Logan, Director of Retail and Distribution at Tesco Ireland, said: "We have one of the most complex 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 fleet of H** haul will replace 2,000 trips per week to serve our expanding network of 166 stores across the country, so switching to cleaner fuels in our value chain will play a vital role in achieving this goal.
DHL's qualifications in utilizing renewable transportation solutions are applauded by our strong commitment to adopting sustainable practices and reducing emissions. We are all committed to promoting collective environmental goals; And to advance our ambition to achieve net zero emissions in our value chain by 2050, and indeed in our own operations by 2035. ”