DHL Group’s contract logistics division DHL Supply Chain announced an €80 million (USD$85 million) investment into a dedicated biomethane production facility in Cork, Ireland, run by biogas developer Stream BioEnergy.

DHL said that it will begin operating biomethane-fueled trucks, and has committed to a 10-year deal with Stream BioEnergy, with the new facility providing fuel for up to 150 trucks. The company said that the agreement will result in an annual carbon reduction of 15,000 tonnes.

Biomethane, or renewable natural gas (RNG), is expected to play a critical role in the transition to cleaner energy sources, particularly for sectors in which energy solutions such as wind or solar are less practical, such as transport. Biomethane is produced from organic waste, such as agricultural, industrial, and household wastes, and is chemically identical to fossil-based natural gas, enabling it to support the decarbonization of hard-to-abate sectors such as road transport and heavy industry, without needing to replace existing transmission and distribution infrastructure.

Established in 2009, Stream BioEnergy develops and operates industrial-scale biogas projects in Ireland, utilizing anaerobic digestion technology to convert organic materials into renewable energy  and biofertilizer. The company’s Cork-based biomethane production site will process 90,000 tonnes of industry and consumer food waste annually, which would have otherwise been sent to landfill.

DHL said that the deployment of biomethane trucks, and the investment in biomethane production will support its efforts to achieve its 2050 net zero target. DHL launched its Sustainability Roadmap in 2021, which included plans to invest €7 billion over ten years in measures to reduce its CO2 emissions, with a focus on the expansion of a zero-emissions fleet, alternative aviation fuels, and climate-neutral buildings.

In addition to the investment, DHL a collaboration with Tesco, which will see DHL operating 92 biomethane trucks across Tesco Ireland’s network, once the new biomethane facility is fully functioning.

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 so by making alternative fuels a reality we can really prove our value as a strategic partner.”

Tesco Ireland’s Retail and Distribution Director Ian Logan added:

“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.”