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DHL Global Forwarding, the air and ocean freight specialist of Deutsche Post DHL Group, has signed an agreement with Hapag-Lloyd, a liner shipping company, for the use of advanced biofuels
As an initial step, Hapag-Lloyd will ship 18,000 TEU of DHL’s volume using advanced biofuels, which is equivalent to a reduction of 14,000 tonnes of Well-to-Wake CO2-emisisons. The two companies share the vision of decarbonising container shipping and logistics.
“The decarbonisation of heavy transport is an important challenge that the entire industry needs to rethink. Together we want to pave the way for Book & Claim and insetting mechanisms to make it easier for shippers to use sustainable fuels,” said Dominique von Orelli, global head of Ocean Freight at DHL Global Forwarding.
Advanced biofuels are based on raw biological materials, such as used cooking oil and other waste products. This material is used to manufacture a fatty acid methyl ester (FAME), which is then mixed with varying proportions of low sulphur fuel oil. Compared to standard fuels, this pure biofuel product lowers greenhouse gas emissions by more than 80%.
“Biofuel will play a significant role in the upcoming years on our path to becoming net zero carbon by 2045. This project will bring us a step closer to offering our customers biofuel-powered transportation as a commercial product and thereby to supporting them in their efforts to reduce their carbon footprint,” said Danny Smolders, managing director global sales at Hapag-Lloyd.
Hapag-Lloyd has been testing advanced biofuels since 2020 and offers a carbon-reduced transport solution utilising biofuel blends instead of traditional fossil marine fuel oil (MFO). The resulting reduction in carbon dioxide equivalent (CO2e) emissions can be offered as a 'Green Product' on a twenty-foot equivalent unit (TEU) basis and thereby transferred to customers in order to help reduce their Scope 3 emissions.
As part of GoGreen Plus, DHL’s customers are offered various solutions for minimising logistics-related emissions and other environmental impacts along the entire supply chain. Therefore, CO2 emissions are reduced in both air and ocean freight, and additionally, the remaining part of the supply chain is made climate neutral by full lifecycle emission compensation.
With the Book & Claim mechanism, DHL can pass on the benefits of lower greenhouse gas emissions (Scope 3 emissions) to its customers. The product offering GoGreen Plus is part of the Group's mid-term sustainability roadmap for 2030 and contributes to the sub-target of having at least 30% of fuel requirements covered by sustainable fuels. To reduce CO2 emissions in line with the Paris Climate Agreement, the Group will spend approx. US$7.15bn in sustainable fuel and clean technologies by 2030.