Finnish renewable fuel producer Neste and DHL Express, the world’s leading international express service provider, have significantly strengthened their collaboration through a substantial sustainable aviation fuel supply agreement that represents one of Asia’s largest SAF deals by volume in the air cargo sector. The partnership demonstrates both companies’ commitment to accelerating greenhouse gas emissions reduction from air cargo transportation.
The agreement encompasses the supply of 7,400 tonnes, equivalent to 9.5 million litres, of neat, unblended Neste MY Sustainable Aviation Fuel™ to DHL Express at Singapore Changi Airport. The supply arrangement will commence in July 2025 and represents a significant milestone in sustainable aviation fuel adoption across the Asia-Pacific region.
Photo: courtesy of DHL
As part of the global partnership focused on decarbonising air and road transport, Neste will provide DHL Express with CORSIA-eligible SAF produced locally at its refinery in Singapore. The Singapore facility operates as the world’s largest SAF production facility, providing the scale and reliability necessary to support major commercial aviation operations. The supply agreement extends for one year, from July 2025 to June 2026, providing both companies with operational certainty while supporting long-term sustainability objectives.
The volume of SAF procured under this partnership represents one of the largest purchases by DHL in the Asia-Pacific region and marks DHL’s first direct procurement of SAF for flights departing from Singapore to destinations across Asia and the Americas. This procurement strategy enables DHL to directly control its sustainable fuel supply while supporting its global decarbonisation commitments.
Neste will deliver the SAF blended with conventional jet fuel directly into Changi Airport’s fuel distribution facilities, utilising the company’s integrated supply chain from its Singapore refinery. This integrated approach ensures efficient fuel delivery while maintaining the quality and reliability standards required for commercial aviation operations. The purchased SAF will account for approximately 35% to 40% of the overall fuel blend composition, representing a substantial proportion of sustainable fuel in the mixture.
The SAF supply is designated specifically for DHL Express’ five Boeing 777 freighters based at DHL’s South Asia Hub located at Changi Airport. These aircraft depart from the airport 12 times per week, providing regular cargo services across the region. The consistent flight schedule ensures efficient utilisation of the sustainable fuel supply while maximising the environmental benefits of SAF adoption.
Christopher Ong, MD for DHL Express Singapore, emphasised the significance of the partnership in achieving new strides in emissions reduction for air transport. He highlighted how the agreement strengthens DHL’s commitment to customers by providing more sustainable shipping options. Ong positioned DHL Express as one of the largest users of SAF globally, leading the way toward more sustainable logistics while driving voluntary demand for SAF adoption. He noted that the company is not just meeting industry standards but setting them through proactive sustainability initiatives.
Carl Nyberg, Senior VP, commercial, renewable products at Neste, expressed excitement about expanding cooperation with DHL to Singapore, recognising the city-state’s position as a leading aviation hub in the Asia-Pacific region. Nyberg highlighted how the partnership leverages Neste’s SAF production and supply capabilities in Singapore while demonstrating the companies’ global collaboration to help DHL achieve its air transportation decarbonisation targets using solutions available at scale today.
The agreement supports Singapore’s broader environmental objectives, specifically contributing to the country’s target to reduce carbon emissions in the aviation sector. Singapore has established a goal of achieving 1 percent SAF use on all passenger and cargo flights from 2026 onwards, and this partnership directly supports the achievement of this target while demonstrating the commercial viability of SAF adoption at scale.
The partnership represents a significant development in sustainable aviation fuel deployment across the Asia-Pacific region, where SAF adoption has historically lagged behind other global markets. By securing direct supply from local production facilities, DHL Express demonstrates how logistics companies can integrate sustainable fuel solutions into their operations while supporting regional sustainability objectives.
The agreement also validates the commercial viability of large-scale SAF production and supply arrangements, providing a model for similar partnerships between fuel producers and aviation operators. The success of this arrangement may encourage additional investment in SAF production capacity and supply infrastructure across the region, supporting broader industry transition to sustainable aviation fuels.
Neste’s ability to supply substantial volumes of SAF from its Singapore facility demonstrates the company’s strategic positioning in the global SAF market and its commitment to supporting aviation decarbonisation efforts. The partnership with DHL Express leverages Neste’s production capabilities while providing a reliable customer for sustainable fuel output, creating a stable foundation for continued SAF market development.
