DHL Supply Chain has unveiled ambitious plans to venture into the realm of sustainable transportation with an €80 million investment in a dedicated biomethane production facility in Cork, Ireland. The facility, operated by Stream BioEnergy, is poised to revolutionize the logistics industry by powering up to 150 trucks while reducing carbon emissions by an estimated 15,000 tonnes annually, equivalent to more than 38 million miles driven by typical petrol-powered passenger vehicles.
This pioneering initiative sees DHL partnering with Tesco Ireland to facilitate the deployment of biomethane-fueled trucks. During the initial vehicle rollout and as production scales up, DHL will subsidize the biomethane supply from alternate sources. Once the new facility achieves full operational capacity, DHL aims to operate a fleet of 92 locally fueled biomethane trucks, covering Tesco's extensive network across the country.
Located in Little Island, Cork, the biomethane production facility, owned and operated by Stream BioEnergy, will process a substantial 90,000 tonnes of industrial and consumer food waste annually, diverting this waste away from landfills. One remarkable aspect of this initiative is that it requires no significant upgrades to Ireland's existing gas grid, making biomethane a versatile, cost-effective, and carbon-neutral solution for decarbonizing commercial road transport.
Ciaran Foley, the Managing Director of DHL Supply Chain in Ireland, expressed pride in the project, stating, “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.”
Ian Logan, Retail and Distribution Director of Tesco Ireland, emphasized the importance of this endeavor for their distribution network, which serves 166 stores nationwide, making over 2,000 weekly trips. He stated, “Moving to a cleaner fuel in our value chain will play a vital role in achieving this. DHL's credentials in leveraging renewable transport solutions are complemented by our 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.” This collaboration between DHL and Tesco Ireland signifies a significant stride toward a more sustainable and eco-friendly future in commercial road transport.
