DB Schenker has secured its largest single-volume order of sustainable aviation fuel to date, with Mercedes-Benz procuring around 13,000 tons of the biofuel to power air shipments from Germany to China, the logistics company said on Monday.

According to the statement, the deal will reduce the global automotive giant’s carbon dioxide equivalent emissions by approximately 40,000 tons, as the fuel is allocated to export freight flights from Frankfurt to Beijing and Shanghai.

“Achieving carbon neutrality is a long-haul journey,” said Thorsten Meincke, DB Schenker’s global board member for air and ocean freight. “This contract represents one of the largest-ever SAF deals in the entire automotive and logistics industries globally.”

Mercedes-Benz’s Sustainability Strategy

The German automaker aims to cut logistics-related CO2 emissions by 60 percent by 2039 compared to 2021 levels.

“Utilizing sustainable aviation fuel for air freight allows us to cut emissions,” said Elke Pusskeiler, head of supply chain management at Mercedes-Benz. “Together with DB Schenker, we made another significant achievement in our efforts for sustainable logistics.”

The two companies have a long-standing partnership across various transport modes, including land, air, sea logistics and warehouse management.

Mercedes-Benz was among the early customers when DB Schenker launched the world’s first regular cargo flight powered by SAF in 2021.

SAF’s Role in Reducing Aviation Emissions

While SAF does not fully eliminate aviation emissions, it can reduce lifecycle greenhouse gas emissions by up to 80 percent compared to conventional fossil fuels, DB Schenker said. The biofuel is derived from waste materials such as used cooking oil and is certified as palm oil-free.

DB Schenker said the SAF used for Mercedes-Benz’s supply chain would be allocated across multiple airline partners globally. The virtual allocation method avoids an equivalent amount of conventional kerosene, although the SAF itself may be used on different flights and routes.

Regulatory Compliance and Market Costs

The company said the European Union’s Renewable Energy Directive II calculates the lifecycle emissions reduction, which falls under Scope 3 emissions accounting.

Scope 3 emissions are indirect greenhouse gas emissions that occur across a company’s value chain, both upstream and downstream but are not directly controlled by the company.

DB Schenker noted that SAF remains significantly more expensive than fossil-based aviation fuel, costing three to five times as much, but the company sees growing corporate demand as firms seek to cut carbon footprints in their supply chains.

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