DHL and Phillips 66 sign three-year deal for major SAF supply

DHL Express has signed a multi-year agreement with Phillips 66 for the supply of more than 240,000 metric tonnes of Sustainable Aviation Fuel over three years. DHL said the arrangement is expected to cut lifecycle greenhouse gas emissions by about 737,000 metric tonnes when compared with conventional jet fuel.

The companies said most of the fuel will be supplied to Los Angeles International Airport, which serves as the DHL West Coast Gateway. Deliveries are also intended for other airports where DHL operates, including San Francisco International Airport. DHL will apply a book-and-claim system to account for its use of sustainable fuel across its air network.

Phillips 66 will produce the SAF at its Rodeo Renewable Energy Complex in California. The facility has the capacity to produce 150 million gallons of neat SAF each year.

Travis Cobb, EVP of Global Operations and Aviation at DHL Express, said, "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 U.S. Our collaboration with Phillips 66 underscores our commitment to a lower-carbon future and demonstrates the importance of sustainable practises in our operations."

Brian Mandell, EVP of Marketing and Commercial at Phillips 66, said, "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 decarbonisation goals. Our agreement with DHL showcases cross-industry collaboration, and together, we aim to drive progress toward sustainable solutions in the aviation sector."

DHL said the agreement is one of the largest SAF supply deals by a U.S. producer for the air cargo sector. The company added that it supports its target of net-zero greenhouse gas emissions by 2050. DHL has been securing SAF partnerships across several regions since 2021 and said the deal will strengthen its GoGreen Plus service, which enables customers to reduce Scope 3 emissions using SAF.