DHL Neste Partner to Expand Sustainable Logistics Using Biofuels

Published: 11/03/2025
Sustainable Fuels Carbon Reduction Green Logistics
DHL Group and Neste are deepening their collaboration to accelerate DHL's decarbonization efforts in aviation and road transportation by utilizing Neste's renewable diesel and sustainable aviation fuel (SAF) solutions. The partnership will focus on developing innovative business models to promote the procurement and application of SAF. Furthermore, they will explore the widespread use of renewable diesel in road transportation. This collaboration aims to provide a model for the green transformation of the logistics industry, demonstrating a commitment to reducing carbon emissions and fostering sustainable practices across the supply chain.
DHL Neste Partner to Expand Sustainable Logistics Using Biofuels

If the global logistics network were compared to a massive carbon emission engine, making this engine cleaner and more efficient would undoubtedly be one of the key challenges in addressing climate change. DHL Group is attempting to find the solution through an enhanced collaboration with renewable fuel giant Neste.

DHL Group has set an ambitious target to achieve net-zero greenhouse gas emissions from logistics operations by 2050. To reach this goal, DHL has chosen to deepen its partnership with Neste, leveraging the latter's leadership in renewable fuels to accelerate its decarbonization efforts. The core of this collaboration involves DHL evaluating and adopting Neste's solutions, including renewable diesel (HVO100) and sustainable aviation fuel (SAF), to support its emission reduction targets in air and road transport.

Mid-Term Goals and Fuel Strategy

DHL Group has established clear and specific mid-term targets for 2030:

  • Electrification of "last-mile" delivery vehicles: Replace two-thirds of last-mile delivery vehicles with electric alternatives.
  • Increased sustainable fuel adoption: Raise the proportion of more sustainable fuels across all transport modes to over 30%, with sustainable aviation fuel being a critical component.

Neste will play a pivotal role in this process as DHL's key fuel supplier. This means Neste must not only provide sufficient quantities of renewable fuels but also work with DHL to explore and optimize fuel usage strategies to maximize emission reduction.

Decarbonizing Air Transport: Innovative Business Model and SAF Procurement

As air transport represents a significant source of carbon emissions in the logistics sector, one of the key focuses of the DHL-Neste partnership is aviation decarbonization. The two companies plan to develop an innovative business model aimed at gradually enabling DHL Group to annually purchase approximately 300,000 metric tons of pure, unblended sustainable aviation fuel from Neste, while supporting additional SAF transactions.

This large-scale SAF procurement will provide DHL's air transport operations with cleaner, more efficient energy options, significantly reducing carbon emissions. The innovative aspect of this business model lies in its structure—not merely a fuel purchase agreement, but a long-term collaboration where both parties share participation, risks, and benefits.

Decarbonizing Road Transport: Application and Expansion of Renewable Diesel

Beyond aviation, road transport accounts for a substantial portion of DHL Group's carbon footprint. Therefore, DHL and Neste will also collaborate to explore the use of renewable diesel to support DHL's road transport decarbonization goals. The partners will work together to promote widespread adoption of renewable diesel in DHL's road fleet, reducing greenhouse gas emissions from ground transportation.

Renewable diesel (HVO100) is a biofuel made from waste and residue materials that can significantly reduce greenhouse gas emissions compared to conventional diesel. By implementing renewable diesel across its road transport vehicles, DHL Group can effectively shrink its carbon footprint and make meaningful progress toward its emission reduction targets.

Executive Perspectives: The Strategic Importance of Collaboration

"Signing this agreement with Neste represents an important step in our 2050 net-zero emissions logistics strategy," said Yinyin Zou, Executive Vice President of Corporate Development at DHL Group. "By working closely with a leading producer in the renewable fuels sector, we can further advance our mid-term targets. Together with Neste, we will develop innovative solutions that not only support our own sustainability goals but ultimately help our customers achieve their decarbonization objectives."
Carl Nyberg, Senior Vice President of Renewable Products at Neste, added: "We look forward to strengthening our existing collaboration with DHL Group through this comprehensive partnership as we jointly address greenhouse gas emissions challenges in transportation. As a pioneer in this space, this agreement allows us to support DHL with renewable fuels that provide solutions for reducing emissions in both air and road transport."

Long-Term Impact: Industry Leadership and Green Transformation

DHL Group and Neste have already successfully collaborated for years in areas such as sustainable aviation fuel delivery. This enhanced partnership will not only help both companies achieve their respective emission reduction targets but will also provide valuable reference and demonstration for the broader logistics industry's green transformation. By showcasing the application potential of renewable fuels in logistics, DHL and Neste are inspiring more companies to join the sustainability movement.

Ultimately, the DHL-Neste collaboration represents more than a commercial partnership between two corporations—it's a proactive response to global sustainability goals. Through technological innovation, business model innovation, and strategic cooperation, the partners are injecting new momentum into the logistics industry's green transition while contributing to a cleaner, more sustainable future.

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