DHL Express Signs 250,000-Ton SAF Offtake Deal with SAF One for First Middle East Production

DHL Express and Dubai-based developer SAF One have signed a landmark offtake agreement bringing the first sustainable aviation fuel production facility in the Middle East into DHL's global SAF supply network. The 10-year agreement secures 25,000 metric tons of unblended SAF annually, totalling 250,000 metric tons over the contract term from the planned start of production in 2028. The deal positions Bahrain as an emerging hub for low-carbon aviation fuel production and provides DHL Express with its first SAF offtake commitment in the Middle East region.

 

Scope of the SAF One Bahrain Facility

 

The SAF One production facility in Bahrain represents one of the most advanced sustainable aviation fuel plants planned for the region, utilising renewable feedstocks and next-generation refining technologies. The plant is designed to deliver high-quality, scalable and certified sustainable aviation fuel suitable for use across regional and intercontinental aviation routes. DHL Express's long-term offtake agreement provides crucial demand market stability that supports the financial viability of the project and the broader development of clean energy infrastructure across the Middle East.

Deepak Munganahalli, Co-Founder and Chief Executive Officer of SAF One, said the offtake agreement is an important step toward bringing a landmark sustainable aviation fuel facility to the Middle East. He acknowledged the support of stakeholders in Bahrain, including BAPCO Energies and the Bahrain Economic Development Board, in advancing the project. The collaboration reflects how national governments and state-affiliated entities are increasingly playing a central role in supporting emerging clean energy infrastructure across the Gulf.

 

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DHL's Decarbonisation Strategy and Targets

 

The agreement supports DHL Express's broader strategy to increase the use of sustainable aviation fuels to 30 percent of total jet fuel consumption by 2030, one of the more ambitious SAF adoption targets in the global logistics sector. Aviation is among the most challenging sectors to decarbonise due to the energy density requirements of long-haul flight and the limited availability of viable alternative fuels. Sustainable aviation fuel currently represents the most credible near-term pathway to reducing aviation emissions at scale.

Travis Cobb, Executive Vice President of Global Network Operations and Aviation at DHL Express, said that integrating the first SAF plant in the Middle East into the company's global supply chain marks another major step toward making sustainable aviation the new normal. He noted that the agreement expands DHL's SAF footprint geographically while strengthening resilience through sourcing diversification. By securing supply from multiple regions and producers, DHL reduces concentration risk in its SAF procurement strategy.

 

The Book and Claim Mechanism and Customer Offering

 

SAF supplied under the agreement will be allocated globally through a verified book and claim model, enabling customers to reduce Scope 3 emissions even on routes not directly fuelled with SAF. The book and claim approach allows DHL to replace fossil fuels with sustainable fuels within its network and allocate the environmental benefits to paying customers, even when their shipments are not physically transported using SAF-powered assets. This mechanism addresses the practical limitation that physical SAF distribution remains constrained by infrastructure and supply availability.

The SAF volumes are integrated into DHL's GoGreen Plus product, which provides decarbonised solutions across the company's core service offerings by leveraging sustainable fuels and low-carbon technologies. The product enables customers to reduce indirect Scope 3 emissions arising from upstream and downstream transportation while supporting voluntary greenhouse gas reporting and progress against decarbonisation targets. As mandatory disclosure frameworks tighten globally, demand for verified emissions reduction solutions is expected to continue rising among corporate shippers.

 

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Strategic Significance for the Middle East

 

Abdulaziz Busbate, Chief Executive Officer of DHL Express MENA, said the company is proud to see the Middle East playing a central role in the global shift toward emission-reduced aviation. He emphasised that partnering with SAF One allows DHL to accelerate regional decarbonisation, strengthen local innovation ecosystems and offer customers credible emission-reduced shipping solutions. The framing positions the agreement as part of a broader regional strategy to develop clean energy capabilities alongside the traditional hydrocarbon economy.

The Bahrain facility also reinforces the country's positioning as a centre for emerging clean energy industries within the Gulf Cooperation Council region. Multiple Middle Eastern economies are investing significantly in renewable energy, green hydrogen and sustainable fuels as part of their economic diversification strategies. Establishing the first SAF production facility in the region provides a meaningful early-mover advantage for Bahrain in what is expected to become a substantial new industrial category over the coming decade.

 

Outlook for Global SAF Supply Expansion

 

The DHL Express and SAF One agreement reinforces a broader pattern in which major logistics and aviation companies are securing long-term offtake commitments to support the buildout of new SAF production capacity globally. Whether the SAF One facility can deliver on its 2028 production start and contracted volumes will depend on construction progress, feedstock availability and continued regulatory support for sustainable aviation fuel adoption. Sustained execution would establish Bahrain as a meaningful node in the global SAF supply network.

The continued expansion of SAF offtake agreements across multiple regions signals that the sustainable aviation fuel market is moving from pilot scale toward industrial deployment. As mandates such as the European Union's ReFuelEU Aviation framework and Japan's emerging SAF requirements tighten, demand certainty is creating the foundation for new production capacity to be financed and built. The next phase of aviation decarbonisation will depend substantially on the pace at which this supply expansion translates into reduced reliance on conventional jet fuel.

 

Source: DHL Express