By Giulia Petroni

Deutsche Post AG said Wednesday that it has struck a deal with Neste Oyj under which the Finnish company will supply it with sustainable aviation fuels in the U.K. until mid-2022 as part of its sustainability strategy.

The German freight-and-logistics group said it would invest around 60 million euros ($69.6 million) to purchase SAFs for its DHL Express division at the U.K.'s East Midlands Airport.

"This is a first step for the group to reach its ambitious 2030 target of meeting at least 30% of its fuel needs in aviation through sustainable fuels," it said.

The investment will allow the company to save around 70,000 tons of carbon dioxide, Deutsche Post said. The supplied sustainable aviation fuel is produced from used cooking oil and avoids the use of palm oil.

Write to Giulia Petroni at giulia.petroni@wsj.com

(END) Dow Jones Newswires

11-10-21 0737ET