DHL invests millions in biomethane for Irish transport network

 

DHL Supply Chain has agreed a 10-year deal with Stream BioEnergy that will see €80 million (approximately £69.4 million) invested in a biomethane production facility in Cork, Republic of Ireland.

DHL says that the new facility will provide fuel for up to 150 trucks, which it calculates will lead to an annual carbon reduction of 15,000 tonnes.

Biomethane, also known as renewable natural gas (RNG), is a type of methane gas that is produced from organic materials through a process called anaerobic digestion or biomass gasification.

 

It is derived from biological matter such as agricultural waste and discarded food, making it preferable to fossil fuels from an environmental perspective. Producing biomethane not only provides a source of energy but can actually reduce the amount of methane in the atmosphere that would naturally be emitted by the decomposition of this organic matter.

In July, Logistics Manager reported that the pressure to decarbonise road transport fleets had driven up demand for biomethane, with gas supplier Gasrec reporting that the company’s sales of the fuel reached an “all-time high” in June.

 

The production facility in Cork is expected to “process 90,000 tonnes of industry and consumer food waste per annum which could otherwise have been sent to landfill”.

Ciaran Foley, Managing Director of DHL Supply Chain Ireland, explained the value of decarbonising its fleet to its customers, saying: “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.”

 

One of DHL’s customers set to benefit from this investment is Tesco Ireland. Once the site is fully operational, 92 biomethane trucks are set to service the retailer’s distribution network in Ireland.

DHL has confirmed that it will subsidise the biomethane needed to roll out these vehicles whilst preparations are made at the production facility. Read more

 

Source: LOGISTICS MANAGER

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