DHL Supply Chain’s Contract Logistics Division Unveils €80 Million Investment in Cork Biomethane Facility
DHL Supply Chain, a division of DHL Group, has disclosed an €80 million (USD$85 million) investment commitment in a specialized biomethane production plant located in Cork, Ireland. The facility will be operated by biogas developer Stream BioEnergy.
Under the terms of the agreement, DHL will commence the operation of biomethane-powered trucks and has pledged to a decade-long partnership with Stream BioEnergy. This new facility will supply fuel for as many as 150 trucks and is anticipated to yield an annual reduction of 15,000 tonnes of carbon emissions. Biomethane, also known as renewable natural gas (RNG), is poised to play a pivotal role in the shift toward cleaner energy sources, especially in sectors where alternative energy solutions like wind or solar may not be as practical, such as transportation. Biomethane, derived from organic waste, including agricultural, industrial, and household residues, possesses the same chemical properties as fossil-based natural gas. This enables it to facilitate the decarbonization of challenging-to-address sectors like road transportation and heavy industry, without necessitating the replacement of existing transmission and distribution infrastructure.
Stream BioEnergy, founded in 2009, specializes in the development and operation of large-scale biogas projects in Ireland, utilizing anaerobic digestion technology to convert organic materials into renewable energy and biofertilizer. The Cork-based biomethane production site is projected to process 90,000 tonnes of industrial and consumer food waste annually, diverting it from landfills.
DHL’s deployment of biomethane-powered trucks and its investment in biomethane production align with its overarching goal of achieving net-zero emissions by 2050. The company introduced its Sustainability Roadmap in 2021, which encompassed a €7 billion investment plan over a decade to reduce CO2 emissions, with an emphasis on expanding a zero-emissions fleet, exploring alternative aviation fuels, and creating climate-neutral buildings.
Furthermore, DHL has entered into a collaborative partnership with Tesco, in which DHL will operate 92 biomethane trucks within Tesco Ireland’s network once the new biomethane facility becomes fully operational.