Logistics provider DHL Supply Chain has unveiled ambitious plans to drive the adoption of biomethane fuel in its Irish transport network with a substantial €80 million (£69.3m) investment.

The company is set to operate biomethane-fueled trucks as it joins forces with Stream BioEnergy, the operator of a dedicated biomethane production facility in Cork.

The new biomethane production facility in Cork will supply fuel to a fleet of up to 150 trucks, leading to an annual carbon reduction of 15,000 tonnes.

DHL has partnered with Tesco Ireland to support the initial rollout of biomethane-fueled vehicles.

Once the Cork facility reaches full operational capacity, DHL plans to deploy 92 locally fueled biomethane trucks across Tesco’s nationwide distribution network.

DHL’s commitment to reducing carbon dioxide emissions extends beyond the retail sector -the company intends to apply the lessons learned from this initiative to other sectors it serves, including consumer, technology, aviation, life sciences and healthcare.

The biomethane production facility, located in Little Island, Cork, is owned and operated by Stream BioEnergy. It will process a substantial 90,000 tonnes of industry and consumer food waste annually.

Managing Director of DHL Supply Chain, Ireland, Ciaran Foley said: “We are extremely proud to be enhancing renewable energy production here in Ireland and our collaboration with Tesco marks a significant step in our shared journey towards achieving net-zero emissions.”

Tesco Ireland’s Retail and Distribution Director Ian Logan said: “We have one of the most sophisticated distribution networks in the country, and improving its efficiency and environmental impact will play an important role in our journey to net zero.

“Our current HGV transport fleet makes over 2,000 trips weekly, serving our growing network of 166 stores nationwide, so moving to a cleaner fuel in our value chain will play a vital role in achieving this.”