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57 min ago 2 min read
Global logistics firm DHL has signed a five-year sustainable aviation fuel (SAF) deal with IAG Cargo, the cargo handling division of International Airlines Group.
The agreement will enable around 240 million litres of SAF uplifted at London Heathrow Airport and reduce the lifecycle greenhouse gas emissions of DHL Express cargo transported on British Airways flights.
Door-to-door division DHL Express will receive the Scope 3 emissions reductions from approximately 40 million litres of neat SAF per year, which together with the 2025 renewal, represents a lifecycle greenhouse gas emissions reduction of 640,000 tonnes of CO2e.
SAF used in this collaboration is certified by International Sustainability & Carbon Certification (ISCC), and derived from sources such as used cooking oil. It yields about 90% lifecycle greenhouse gas emissions reductions compared with the fossil jet fuel it replaces.
“This agreement shows what is possible when two committed SAF users in the industry pool their efforts,” said Travis Cobb, Executive Vice-President Global Network Operations & Aviation at DHL Express. “It significantly expands our ability to reduce lifecycle greenhouse gas emissions on a major trade lane and demonstrates how cross-sector partnerships can contribute towards concrete lifecycle greenhouse gas emissions reductions.”
Camilo Garcia Cervera, Chief Sales and Marketing Officer at IAG Cargo, said such partnerships will be critical to scaling the use of SAF.
SAF is gaining momentum as airlines look to cut emissions, but as production begins to scale, the carbon dioxide market could start to feel the impact.
Experts note that as synthetic fuel technologies scale, demand for , raising questions about whether the existing supply chain is prepared.
Having come into force last year, the UK SAF mandate will require 10% of jet fuel supplied to its aviation market to be sustainable by 2030, with sub-targets .
SAF faces significant challenges such as high production costs (two-to-eight times more expensive than conventional jet fuel), limited feedstock availability (waste oils, biomass), and immense capital investment needed for infrastructure. Many production technologies are still in their infancy, leading to risks in implementation.
