German logistics giant DHL is teaming up with energy firm HH2E and South African petrochemicals firm Sasol on the expansion of sustainable aviation fuel (SAF) production in Germany, HH2E said on Monday.

The companies have signed an agreement to set up a joint initiative to build potential production capacities for SAFs based on green hydrogen, or eSAFs, somewhere in eastern Germany, HH2E said in a statement.

They plan production of at least 200,000 tonnes per year, with the potential to scale up to 500,000 tonnes per year, it added.

Aircraft manufacturer Airbus also intends to join the consortium to use the jet fuel, according to the statement.

The agreement came as industry met in Hamburg for the National Aviation Conference, where German Chancellor Olaf Scholz spoke of the importance of expanding SAF production in order to meet EU climate targets.

The companies’ goal is to realise an eSAF production in Germany by 2030, the statement said, adding that they would immediately specify the technical and financial planning, as well as the financing and definition of the regulatory framework.