DHL boosts biomethane use for Tesco in Ireland

Cork, Ireland: DHL has a 10-year deal with Stream BioEnergy to supply biomethane for use on a Tesco Ireland contract. DHL Supply Chain will begin operating biomethane fuelled trucks from a dedicated biomethane factory in Cork providing fuel for up to 150 trucks. Using the gas will cut carbon emissions by 15,000 tonnes.

DHL will support the initial vehicle roll-out and, while production ramps up, will subsidise the biomethane from other sources. Once the new plant is fully functioning, DHL will operate 92 locally fuelled biomethane trucks on Tesco’s network.

DHL intends to continue to roll this out to all the other sectors in which it operates. The biomethane site at Little Island, Cork, is owned and operated by Stream BioEnergy, and will process 90,000 tonnes of industry and consumer food waste annually 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, DHL says.

“The project reflects DHL’s commitment to delivering sustainable logistics solutions and the company’s global GoGreen agenda. The deployment of biomethane trucks, as well as investment in domestic biomethane energy production will play an important part in helping the company achieve its target of net-zero emissions by 2050,” DHL says.

Ciaran Foley, managing director, DHL Supply Chain, Ireland, 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 so by making alternative fuels a reality we can really prove our value as a strategic partner.”

Ian Logan, retail and distribution director, Tesco Ireland, 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 a 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 both committed to promoting collective environmental objectives; and to advance our ambition to achieve carbon neutrality in our value chain by 2050, and indeed in our own operations by 2035.”