DHL Express and Neste sign deal for 7,400 tonnes of sustainable aviation fuel
The one-year contract is one of the largest of its kind by volume for the air cargo sector in Asia
[SINGAPORE] Finnish oil and fuel producer Neste will provide 7,400 tonnes, or around 9.5 million litres, of sustainable aviation fuel to parcel-delivery giant DHL Express in Singapore.
By volume, the contract is one of the largest of its kind for the air cargo sector in Asia, and will last from July 2025 to June 2026.
DHL Express did not comment on the cost of the deal.
Neste will supply the fuel from its refinery in Singapore to five Boeing 777 freighters that operate from DHL Express’ South Asia Hub at Changi Airport. The fuel provided will account for around 35 to 40 per cent of the total used by the fleet.
The use of sustainable aviation fuel is expected to reduce carbon emissions from the fleet by around 24,000 tonnes over the duration of the contract.
Reliance on this type of fuel is expected to increase in the region in the coming years as countries introduce usage targets for sustainable aviation fuel to reduce emissions in their aviation sectors.
For example, Singapore aims for a 1 per cent target beginning in 2026, raising it to 3 to 5 per cent by 2030. Both India and South Korea aim for departing international flights to use 1 per cent of sustainable aviation fuel from 2027.
Additionally, the International Civil Aviation Organization’s Carbon Offsetting and Reduction Scheme for International Aviation, which will require airlines to offset their carbon emissions from flights, comes into force in 2027.
In January, DHL Express signed its first sustainable aviation fuel deal in Asia with Cosmo Oil Marketing for the supply of 7.2 million litres of the fuel to its air freighters in Japan, beginning in April.
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In May, Singapore Airlines Group signed a deal with Neste for 1,000 tonnes of sustainable aviation fuel.
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