DHL Express has signed a long-term sustainable aviation fuel agreement with Dubai-based developer SAF One, securing access to 250,000 metric tonnes of sustainable aviation fuel over the next decade as the logistics company accelerates efforts to reduce aviation emissions across its global network.
The agreement will integrate the first sustainable aviation fuel production facility in the Middle East into DHL’s worldwide SAF supply chain and marks one of the region’s most significant commercial aviation fuel partnerships to date.
Under the deal, DHL Express will receive 25,000 metric tonnes of unblended sustainable aviation fuel annually from SAF One’s planned production facility in Bahrain, beginning from 2028.
The fuel will support DHL’s target of increasing sustainable aviation fuel usage to 30 per cent by 2030.
Bahrain facility becomes regional SAF milestone
The fuel will be produced at SAF One’s flagship plant in Bahrain, which the companies described as one of the most advanced sustainable aviation fuel facilities planned in the region.
According to DHL and SAF One, the plant will utilise:
- Renewable feedstocks
- Advanced refining technologies
- Certified sustainable fuel production systems
- Scalable SAF manufacturing processes
The agreement positions Bahrain as a new entrant in the global sustainable aviation fuel market at a time when airlines, logistics operators and cargo carriers are facing mounting pressure to reduce carbon emissions.
Industry executives said the partnership also strengthens the Middle East’s role in aviation decarbonisation infrastructure.
Abdulaziz Busbate, CEO of DHL Express MENA, said the agreement reflects the region’s growing strategic role in cleaner aviation development.
“Partnering with SAF One allows us to accelerate regional decarbonisation, strengthen local innovation ecosystems, and offer our customers credible and transparent emission reduced shipping solutions,” he said in the company’s announcement.
DHL expands aviation decarbonisation strategy
The agreement forms part of DHL Express’ broader global strategy to secure long-term sustainable fuel supplies from multiple regions as competition for SAF intensifies worldwide.
The logistics company said integrating the Bahrain facility into its global supply chain will help diversify sourcing and improve long-term fuel resilience.
Travis Cobb, Executive Vice President for Global Network Operations and Aviation at DHL Express, said the partnership broadens the company’s SAF footprint geographically while strengthening supply security.
According to the company:
- The agreement runs for ten years
- Total contracted supply equals 250,000 metric tonnes
- Production is scheduled to begin in 2028
- Fuel allocations will support regional and intercontinental air operations
The SAF volumes will be distributed using a book-and-claim model, allowing emissions reductions to be allocated across DHL’s network even when shipments are not physically transported on SAF-powered aircraft.
Demand for SAF accelerates globally
Sustainable aviation fuel has become central to the aviation industry’s long-term decarbonisation strategy because it can significantly reduce lifecycle carbon emissions compared with conventional jet fuel.
However, the industry continues to face major challenges around:
- Limited global production capacity
- High SAF costs
- Supply chain scalability
- Long-term feedstock availability
Against that backdrop, long-duration offtake agreements have become increasingly important for SAF developers seeking financial stability and infrastructure investment.
DHL said its commitment provides demand certainty for the Bahrain facility while supporting the expansion of clean energy infrastructure in the region.
Deepak Munganahalli, Co-Founder and CEO of SAF One, described the agreement as a major step towards establishing a landmark SAF facility in the Middle East.
He also acknowledged support from Bahraini stakeholders including BAPCO Energies and the Bahrain Economic Development Board.
GoGreen Plus strategy gains momentum
The SAF volumes secured under the agreement will be integrated into DHL’s GoGreen Plus programme, which allows customers to reduce logistics-related Scope 3 emissions through sustainable fuel allocation mechanisms.
The company said the programme is designed around “true value chain decarbonisation” enabled through book-and-claim accounting structures.
Under this system:
- DHL replaces fossil fuel usage within its network using SAF
- Environmental benefits are allocated to participating customers
- Customers can reduce reported transportation emissions
- Decarbonisation benefits extend beyond physically fuelled routes
The approach has gained traction across global aviation and logistics sectors as companies seek scalable ways to reduce emissions despite limited direct SAF availability on specific flight sectors.
Middle East aviation sector shifts towards cleaner fuels
The agreement also signals growing momentum for sustainable aviation fuel development in the Gulf region, where governments and aviation stakeholders are increasingly investing in low-carbon transport infrastructure.
Traditionally known as a major hub for conventional aviation fuel production and global air connectivity, the Middle East is now positioning itself within emerging sustainable aviation supply chains.
Industry observers say projects such as SAF One’s Bahrain facility could help the region attract:
- Sustainable fuel investment
- Aviation technology partnerships
- Advanced refining capabilities
- Regional clean energy ecosystems
The development comes as global airlines and cargo operators intensify efforts to meet long-term net-zero commitments while maintaining operational growth.
Long-term supply agreements reshape aviation fuel markets
For aviation and logistics companies, access to sustainable fuel is rapidly becoming both an environmental requirement and a competitive advantage.
As production remains constrained globally, companies are increasingly locking in future supply years before facilities begin operations.
DHL’s agreement with SAF One highlights how long-term fuel procurement is evolving from a sustainability initiative into a strategic infrastructure decision.
With production expected to begin in 2028, the Bahrain facility could become an important test case for how emerging SAF hubs outside Europe and North America integrate into global aviation decarbonisation networks over the next decade.
Join the conversation
No comments yet
Be the first to share your thoughts!
Sign In to Comment