Biofuels for sustainable retail logistics

by Julia Pott

Large retail chains have to rely on extensive logistics – from global product sourcing to doorstep delivery. In a market that places increasing emphasis on sustainability, leading retailers such as Walmart, Tesco, EDEKA and SPAR recognise the urgency of making their transport more environmentally friendly. This is why they are increasingly using alternative fuels, such as biofuels, in their own transport fleets and those of their service providers.

Alternative fuels are crucial to making the transport sector more sustainable. As the transport and logistics sector is one of the main sources of CO₂ emissions, alternative fuels offer enormous potential to significantly reduce these emissions and support global climate targets.

However, the more sustainable the raw materials used and the more renewable energies such as wind or solar energy are utilised for production, the more environmentally friendly and resource-efficient alternative fuels become. There is still a considerable need for development in this area.

• biodiesel,
• bioethanol,
• biomethane,
• biogas and
• bio-LNG.

The regional supermarket group EDEKA Minden-Hannover has been investing in converting its logistics fleet to bio-LNG since 2023. The REEFUEL bio-LNG (liquefied natural gas) fuel is produced from green hydrogen and biomethane from certified biological waste utilisation.

The retail company estimates that around 16,000 tonnes of CO₂ have been saved so far and states that it has invested over 200 million euros to replace diesel trucks with IVECO S-Way LNG vehicles. As of May 2024, 300 of these vehicles are already in use. The plan is to operate the entire lorry fleet almost CO₂-free by the end of 2025.

At the same time, a refuelling station infrastructure is being set up to ensure the long-term supply of bio-LNG. Fuelling stations at the EDEKA logistics locations in Lower Saxony and Saxony-Anhalt are already in operation, and further locations in Brandenburg are planned by 2025.

The supermarket chain Tesco Ireland is also involved in a project to decarbonise the logistics sector and is cooperating with the logistics service provider DHL. In September 2023, DHL announced an investment of 80 million euros in a biomethane production plant in Cork. The plant, operated by Stream BioEnergy, will process 90,000 tonnes of industrial and food waste annually. The biomethane produced, a renewable and potentially carbon-neutral gas, will be used as a fuel and is expected to save 15,000 tonnes of CO₂ annually. Once the new plant is operational, DHL will deploy 92 locally fuelled biomethane lorries across Tesco's nationwide network.

The SPAR headquarters in Dornbirn, Austria, has been using bio-based HVO fuel since October 2023. HVO stands for hydrogenated or hydrotreated vegetable oil. According to SPAR, the fuel is made from 100% used cooking oil and production waste. The new HVO fuel not only saves many greenhouse gas emissions, it also reduces particulate matter and nitrogen oxides through modern Euro6 engines. SPAR Austria has set itself the goal of converting its entire logistics operations to renewable energy sources by 2050 at the latest.

Biofuels reduce greenhouse gas emissions and climate change. They can also utilise renewable resources or even upcycle waste products. Some pioneers in the retail sector are sparing no expense to test innovative solutions in their logistics fleets.

Nevertheless, the road to complete climate neutrality and the truly sustainable production of fuels remains long. However, the pressure on the retail sector from consumer expectations and political requirements is growing. In the long term, many companies will have to address sustainable logistics concepts.

Sources: Wikipedia article on biofuel, Press release Edeka, Press release Tesco and Press release SPAR