DHL Supply Chain has invested €80m (£70m) in a biomethane production facility in Cork in order to begin operating HGVs in Ireland on the renewable gas.

The new facility will provide fuel for up to 150 trucks, resulting in an annual carbon reduction of 15,000 tonnes.

As part of a shared commitment to decarbonising Ireland’s transport network, DHL said it had joined forces with Tesco and once the new facility was fully functioning, it would operate 92 locally fuelled biomethane trucks across the supermarket’s country-wide network.

In the meantime, it aimed to subsidise the biomethane from other sources.

The biomethane production site at Little Island, Cork, owned and operated by Stream BioEnergy, will process 90,000 tonnes of industry and consumer food waste each year which could otherwise have been sent to landfill.

Ciaran Foley, DHL Supply Chain Ireland MD, said: “Our collaboration with Tesco marks a significant step in our shared journey towards achieving net-zero emissions.

“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.”

Tesco Ireland’s retail and distribution director Ian Logan said: “Our current HGV transport fleet makes over 2,000 trips weekly, serving our growing network of 166 stores nationwide, so moving to a cleaner fuel in our value chain will play a vital role in achieving this.

“DHL’s credentials in leveraging renewable transport solutions are complimented by our own strong commitment to embracing sustainable practices and driving down our emissions.”

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