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Home>Distribution>Transport>DHL investment in biomethane in Ireland

DHL investment in biomethane in Ireland

02 October 2023

DHL SUPPLY Chain will drive biomethane use in its Irish transport network with an €80 million investment in production.

The logistics services provider has committed to a 10-year deal with Stream BioEnergy in its biomethane production facility in Cork – enabling the creation of 130 jobs and supporting an annual carbon reduction of 15,000 tonnes.

Biomethane is a renewable gas with the capacity to be carbon neutral. The new facility will provide fuel for up to 150 trucks, resulting in an annual carbon reduction of 15,000 tonnes, the equivalent of more than 38 million miles driven by an average petrol-powered passenger vehicle.

As part of a shared commitment to decarbonising Ireland’s transport network, DHL has joined forces with leading grocery retailer, Tesco Ireland. To support the initial vehicle roll-out and whilst production ramps up, DHL will subsidise the biomethane from other sources. Once the new facility is fully functioning, DHL will operate 92 locally fuelled biomethane trucks across Tesco’s country-wide network.

The biomethane production site at Little Island, Cork will process 90,000 tonnes of industry and consumer food waste per annum 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. 

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.