In future, DHL Express shipments traveling from London Heathrow to destinations in the U.S. will be flown under significantly lower emission conditions. This is the result of an SAF agreement that the two companies have now signed. It provides for the IAG fleet to be fueled with 240 million liters of SAF by 2030, based on the number of shipments loaded by DHL in the cargo holds of the airline’s passenger aircraft. If shipment volumes increase, the amount of SAF can be flexibly scaled to match. The current agreement follows a series of previous SAF contracts between the two companies.
DHL transports the bulk of its shipments within its global network on board of its own freighter fleet. However, it also partners with several passenger airlines that carry the integrator’s consignments in the lower decks of their aircraft. One carrier that plays a prominent role in this respect, is British Airways, a member of the IAG Group. For years, it has flown a high volume of the integrator’s parcels and packages from its London Heathrow hub, on transatlantic routes to destinations in the U.S. For this purpose, DHL customers can book their air freight as GoGreen Plus services from London to New York, Chicago, Dallas or Los Angeles, for instance, but also on other routes via the underlying Book & Claim approach – this way enabling their goods to be transported under significantly reduced greenhouse gas emission conditions.
SAF collaboration since 2023
DHL and IAG first marketed this product in 2023, when they signed their initial SAF pact. Since then, the GoGreen Plus booking numbers keep growing.
According to Henrik von Storch, DHL’s Director of Global Sustainable Aviation, since the very beginning of their collaboration, British Airways has been very positive to issues that drive the decarbonization of air transport ahead. “This mindset is a key reason why we work closely with the airline’s Cargo Division on environmental issues.”
Supply/demand gap might narrow in future
The now-expanded partnership strengthens his company’s collaboration with IAG Cargo and reflects both players’ mutual commitment to continuing to reduce aviation lifecycle greenhouse gas emissions. Ensuring stable and predictable SAF access is increasingly important as customers seek credible, long-term solutions to reduce their transport-related emissions, the executive emphasizes. For example, European airlines are currently required to blend 2% sustainable aviation fuel (SAF) into traditional Jet A-1 fuel. The target is 6% by 2030, although the UK regulator requires a 10% blend. These regulations set a baseline for SAF growth, but the two companies’ collaboration is on voluntary SAF use beyond the mandated amount.
Due to the gap between high demand and limited supply, SAF costs four or five times as much per liter as traditional kerosene. However, this might change progressively, as a large number of smaller suppliers are emerging, helping to increase production rates. “Despite all the progress, I certainly don’t expect to see a 1:1 price ratio between traditional kerosene and SAF in my professional lifetime,” states manager von Storch.
Government initiatives are needed
This is because raw materials such as food waste, fats from deep fryers, and kitchen waste are limited. And e-fuels based on the Fischer-Tropsch synthesis – although developed as early as 1925, by chemists, Franz Fischer and Hans Tropsch – are not yet technically mature. So, government incentives will be needed to ramp up SAF production. The market alone will not be able to close the supply and demand gap.
Fleet rollover becomes an issue
In addition to the SAF deal with IAG, DHL is also driving forward the decarbonization of its own freighter fleet and those of its partner airlines. Furthermore, fleet policy plays a decisive role in lowering the environmental footprint: the newer the freighters, the fewer greenhouse gases their engines emit. This applies to both major frame makers, Boeing and Airbus. “As we have demonstrated with replacing the B747F with the B777F, we are continuously looking for new freighter aircraft options, both new build and conversions” says the manager. A decision is still pending.
