DHL Express Signs Its First Middle East SAF Offtake Agreement

Why It Matters

The agreement expands DHL’s SAF footprint into a high‑growth region, diversifying supply and accelerating decarbonisation for global air cargo. It also signals the Middle East’s emergence as a key hub for low‑carbon aviation fuels.

Key Takeaways

• DHL secures 25,000 metric tons of SAF annually from Bahrain
• Ten‑year off‑take totals 250,000 metric tons, starting 2028
• SAF One's plant is the Middle East’s first commercial SAF facility
• DHL aims for 30% SAF use across its fleet by 2030
• Book‑and‑claim model lets global customers offset Scope 3 emissions

Pulse Analysis

Sustainable aviation fuel is rapidly becoming the linchpin of the aviation industry’s climate strategy, offering up to an 80% reduction in lifecycle CO₂e compared with conventional jet fuel. The Middle East, with abundant feedstock and strategic logistics hubs, is poised to become a major SAF producer. DHL’s partnership with SAF One taps into this emerging supply chain, reinforcing the carrier’s commitment to greener operations while positioning the region as a critical node in the global decarbonisation puzzle.

Under the ten‑year offtake, DHL will receive 25,000 metric tons of neat SAF each year from the Bahrain facility, a volume that can be allocated worldwide via a book‑and‑claim system. This mechanism allows customers to claim emissions reductions even on routes not directly fueled by SAF, integrating the fuel into DHL’s GoGreen Plus portfolio. By embedding SAF into its value‑chain, DHL not only meets its internal 30% SAF target for 2030 but also offers shippers a transparent, verifiable path to lower Scope 3 emissions, a growing demand in corporate sustainability reporting.

The deal underscores a broader shift among logistics providers to secure long‑term SAF contracts, hedging against volatile fossil‑fuel prices and tightening regulatory standards. Competitors such as UPS and FedEx are accelerating similar initiatives, prompting a race to lock in regional production capacity. As governments in the Gulf and North Africa roll out incentives for low‑carbon fuels, the market is likely to see a surge in new SAF plants, driving down costs and expanding availability. DHL’s early move positions it to capture cost advantages and brand leadership as the industry transitions toward a low‑carbon future.