DHL to invest €80m in Cork biomethane facility

Logistics giant DHL has announced an €80 million investment in a biomethane production facility in Cork that will supply enough fuel to power a fleet of up to 150 trucks.

DHL Supply Chain has signed a 10-year deal with Stream BioEnergy to operate the facility, which will result in the creation of 130 jobs and support an annual carbon reduction of 15,000 tonnes, according to the company.

Biomethane is a renewable gas with the capacity to be carbon neutral. The new facility will provide enough fuel to power the equivalent of more than 38 million miles driven by an average petrol-powered passenger vehicle, DHL said.

DHL has teamed up with Tesco Ireland in a deal that will involve it operating 92 locally-fuelled biomethane trucks for the retailer here. To support the initial vehicle roll-out and while production ramps up, DHL said it would subsidise the biomethane from other sources.

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DHL said this investment was a potential “game changer” for the transportation industry in Ireland. The biomethane production site at Little Island, Cork, owned and operated by Stream BioEnergy, will process 90,000 tonnes of industry and consumer food waste each year.

Commenting on the investment, Ciaran Foley, managing director of DHL Supply Chain Ireland, 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.”

Ian Logan, Tesco Ireland’s retail and distribution director, said “improving its efficiency and environmental impact” would play an important role in the retailer’s move 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,” he said.

“DHL’s credentials in leveraging renewable transport solutions are complemented by our own strong commitment to embracing sustainable practices and driving down our emissions. We are both committed to promoting collective environmental objectives, and to advance our ambition to achieve carbon neutrality in our value chain by 2050, and indeed in our own operations by 2035.”

DHL’s Irish operation is part of the worldwide DHL Group, generated revenues of more than €94 billion globally in 2022.