Reducing Carbon Emissions

Tesco Ireland

DHL commits to a 10-year deal with Stream BioEnergy in its biomethane production facility, enabling the creation of 130 jobs and supporting an annual carbon reduction of 15,000 tonnes

The logistics provider is leading change in its industry, decarbonising a significant proportion of the retail transport sector in Ireland, by announcing the launch of the first phase of its Biomethane rollout in partnership with Tesco Ireland.

Dublin, September 21, 2023: 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.

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 fully functions, 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 sustainable logistics solutions and the global GoGreen agenda. The deployment of biomethane trucks and investment in domestic biomethane energy production will play an essential part in helping the company achieve its net-zero emissions target by 2050.

Managing Director of DHL Supply Chain, Ireland, Ciaran Foley, said that DHL was incredibly proud to be enhancing renewable energy production here in Ireland, and its collaboration with Tesco marked a significant step in the business's 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 prove our value as a strategic partner," said Foley.

Tesco Ireland's Retail and Distribution Director Ian Logan said that Tesco Ireland has one of the most sophisticated distribution networks in the country, and improving its efficiency and environmental impact will play an essential role in the 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," said Logan.

"DHL's credentials in leveraging renewable transport solutions are complimented by our strong commitment to embracing sustainable practices and driving down our emissions.

Logan continued that DHL was committed to promoting collective environmental objectives and advancing its ambition to achieve net zero in its value chain by 2050 and its operations by 2035.