DHL Supply Chain has announced plans to begin operating biomethane fuelled trucks with an investment worth €80 million into a dedicated biomethane production facility in Cork, run by Stream BioEnergy. Biomethane is a renewable gas with the capacity to be carbon neutral. The new facility will fuel up to 150 trucks, resulting in an annual carbon reduction of 15,000 tonnes, the equivalent of more than 38 million miles driven by an average petrol-powered passenger vehicle.
Managing Director of DHL Supply Chain, Ireland, 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. By making alternative fuels a reality, we can prove our value as a strategic partner.”
As part of a shared commitment to decarbonising Ireland’s transport network, DHL has joined forces with leading grocery retailer Tesco Ireland. DHL will subsidise the biomethane from other sources to support the initial vehicle rollout whilst production ramps up. Once the new facility is fully functioning, DHL will operate 92 locally fuelled biomethane trucks across Tesco’s country-wide network.
DHL is fundamentally decarbonising 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 and operated by Stream BioEnergy, will process 90,000 tonnes 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 decarbonise 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 and investment in domestic biomethane energy production will play an important part in helping the company achieve its net-zero emissions target by 2050.
Tesco Ireland’s Retail and Distribution Director Ian Logan said: “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 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 committed to promoting collective environmental objectives and advancing our ambition to achieve net zero in our value chain by 2050, and indeed in our own operations by 2035.”
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