DHL Group and IAG Cargo have expanded their sustainable aviation fuel (SAF) partnership through a new multi-year agreement aimed at reducing emissions from air cargo operations.
The five-year deal, running through 2030, builds on a previous 2025 renewal and is will enable the use of around 240 million liters of SAF at London Heathrow Airport. The fuel will be used for DHL Express shipments transported on flights by British Airways, part of International Airlines Group’s network.
Under the agreement, DHL Express will receive the Scope 3 emissions reductions linked to approximately 40 million liters of SAF per year which, combined with the earlier renewal, will contribute toward lifecycle greenhouse gas savings of around 640,000 metric tons of CO2e, the companies said.
The SAF used in the partnership is certified under International Sustainability & Carbon Certification (ISCC) standards and is produced from feedstocks such as used cooking oil. It is expected to deliver lifecycle emissions reductions of about 90% compared with conventional jet fuel.
The collaboration also includes a framework agreement between DHL Global Forwarding (DGF) and IAG Cargo, designed to expand access to sustainable fuels across DHL’s business units. Including this broader agreement, total emissions reductions across the the DHL Group could exceed one million metric tons of CO2e.
DHL said the cross-divisional approach is intended to secure long-term SAF supply and support growing demand for lower-emission logistics services.
“This agreement shows what is possible when two committed SAF users in the industry pool their efforts,” said Travis Cobb, EVP global network operations and aviation at DHL Express. “It significantly expands our ability to reduce lifecycle greenhouse gas emissions on a major trade lane and demonstrates how cross-sector partnerships can contribute toward concrete lifecycle greenhouse gas emissions reductions.”
Camilo Garcia Cervera, chief sales and marketing officer at IAG Cargo, added, “DHL and IAG Cargo have a longstanding relationship, and it’s great to see our partnership continue to grow as we work together to deliver more sustainable air freight solutions while we keep global trade moving.”
The agreement supports DHL’s target of increasing the share of SAF in its air transportation operations to 30% by 2030. The companies said long-term supply agreements are key to scaling SAF use and providing more consistent lower-emission transportation options.
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