International express service provider DHL Express, and renewable fuels producer Neste announced today a new agreement for the supply of 7,400 metric tons (9.5 million liters) of sustainable aviation fuel (SAF) to be delivered over the next year to power DHL’s international cargo flights from Singapore.
The deal marks one of the largest SAF agreements for the air cargo industry to date, and DHL’s first direct procurement of SAF for its flights departing Singapore Changi Airport.
The agreement forms part of a broader partnership between DHL and Neste, following the launch of a collaboration between the companies announced earlier this year, including plans to offtake around 300,000 tons – roughly 375 million liters – of unblended SAF per year by 2030, and to explore the use of renewable diesel in DHL’s road transport.
The companies added that the new agreement will also contribute to Singapore’s target to reduce carbon emissions in the aviation sector. Last year, Singapore announced a series of actions aimed at decarbonizing its aviation sector, including new rules mandating that all departing flights be required to use SAF, beginning at 1% from 2026.
Scaling the use of sustainable aviation and alternative fuels forms a significant part of DHL’s Sustainability Roadmap. Launched in 2021, the roadmap included plans to invest €7 billion over ten years in measures to reduce its CO2 emissions, with a focus on the expansion of a zero-emissions fleet, alternative aviation fuels, and climate-neutral buildings. In addition to its 2050 net zero goal, DHL also has interim targets to increase the share of more sustainable fuels across all transportation modes to more than 30%, and to electrify two-thirds of last-mile delivery vehicles by 2030.
Christopher Ong, Managing Director for DHL Express Singapore, said:
“As one of the largest users of SAF globally, DHL Express is leading the way towards more sustainable logistics and driving voluntary demand for SAF adoption. We are not just meeting industry standards but setting them.”
Finland-based Neste provides renewable and circular solutions for sectors including road transport, aviation, and polymers and chemicals. The company’s products include Neste MY Sustainable Aviation Fuel, made from sustainably sourced renewable waste and residues such as used cooking oil and animal fat waste, and compatible with existing aircraft engines and airport fuel infrastructure, and Neste MY Renewable Diesel, produced from renewable raw materials using a hydrogen treatment process, that can be used as a drop-in replacement to fossil diesel, to significantly reduce GHG emissions. According to Neste, the company’s Neste MY Sustainable Aviation Fuel reduces greenhouse gas emissions by up to 80% over the fuel’s life cycle, compared to using conventional jet fuel.
Under the new agreement, Neste will supply DHL with SAF produced locally at its refinery in Singapore, the world’s largest SAF production facility, from July 2025 to June 2026. The SAF supplied by Neste will account for approximately 35 to 40% of the overall fuel usage of DHL Express’ five Boeing 777 freighters located at its South Asia Hub in Singapore Changi Airport.
Carl Nyberg, Senior Vice President Commercial, Renewable Products at Neste, said:
“We are excited to expand our cooperation with DHL to Singapore, a leading aviation hub in Asia Pacific. It leverages our SAF production and supply capabilities in Singapore and demonstrates how we are working together with DHL globally to help the company achieve its air transportation decarbonization targets using a solution that is available at scale today.”
