Germany-headed global logistics major DHL Express, a DHL Group company, has recently announced a "significant" sustainable aviation fuel (SAF) agreement with Phillips 66 Company, a leading integrated downstream energy provider and SAF producer headquartered in the United States.
According to a statement, this agreement will see the delivery of over 240,000 tonnes of SAF over three years, aimed at reducing lifecycle greenhouse gas (GHG) emissions by approximately 737,000 tonnes compared to conventional jet fuel, marking a major milestone in DHL’s commitment to sustainability.
The majority of the SAF will be delivered to Los Angeles International Airport (LAX), DHL’s US West Coast Gateway, with future intended deliveries to other West Coast airports where DHL maintains operations, such as San Francisco International Airport (SFO).
Utilizing a book-and-claim approach, DHL Express is able to manage its carbon footprint through the use of sustainable fuels in the air cargo sector.
The SAF will be produced at Phillips 66’s Rodeo Renewable Energy Complex in California, one of the world’s largest renewable fuels facilities with a production capacity of 150 million (US) gallons (≈ 568 million litres) per annum of neat unblended SAF.
A major SAF off-take deal
The agreement with Phillips 66 represents one of the largest SAF deals by an American producer and for the overall air cargo sector, paving the way for future collaborations in the SAF space.
This agreement between Phillips 66 and DHL demonstrates our shared commitment to SAF market leadership and credible action in the growing SAF industry. Through our global renewable fuel business, we are committed to supporting DHL and our customers in achieving their decarbonization goals. Our agreement with DHL showcases cross-industry collaboration, and together, we aim to drive progress toward sustainable solutions in the aviation sector, said Brian Mandell, EVP Marketing and Commercial at Phillips 66.
DHL Express has a long-standing commitment to sustainability, and this deal aligns with its broader strategy to achieve net-zero greenhouse gas emissions by 2050.
DHL Express has been actively securing SAF partnerships worldwide, including in Europe, North America, and the Asia Pacific regions, since 2021, to address its air freight carbon footprint effectively.
This agreement will contribute significantly to DHL’s GoGreen Plus service, which enables customers to reduce their Scope 3 GHG emissions using SAF.
This agreement with Phillips 66 is a significant milestone for DHL Express as we work towards our sustainability goals. By securing a reliable supply of SAF, we are not only reducing our carbon emissions – and those within our customers’ supply chains – but also setting a precedent for the logistics and air cargo industries in the US. Our collaboration with Phillips 66 underscores our commitment to a lower-carbon future and demonstrates the importance of sustainable practices in our operations, said Travis Cobb, EVP Global Operations and Aviation at DHL Express.
