Multi-year agreement covers SAF delivery to Los Angeles gateway and other West Coast facilities, supporting carrier's net-zero emissions target
DHL Express has struck a multi-year Sustainable Aviation Fuel (SAF) agreement with US-headquartered SAF producer Phillips 66 for the delivery of over 240,000 metric tons of the fuel over a three-year period.
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).
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 150M gallons per year of neat SAF (i.e. SAF that is not blended with conventional jet fuel).
The agreement is aimed at reducing lifecycle greenhouse gas emissions by approximately 737,000 metric tons compared to conventional jet fuel.
DHL Express said the agreement will contribute to the GoGreen Plus service, which enables customers to reduce their Scope 3 greenhouse gas emissions using SAF. The SAF will be used in combination with DHL's ‘book and claim’ approach.
Travis Cobb, executive vice president global operations and aviation at DHL Express, stated: “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 practices in our operations.”
Brian Mandell, executive vice president, marketing and commercial at Phillips 66, stated: “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.”
The agreement with Phillips 66 represents one of the largest SAF deals by a US producer and for the overall air cargo sector, said DHL Express.
The deal aligns with the company's broader strategy to achieve net-zero greenhouse gas emissions by 2050.
DHL Express has been actively securing SAF partnerships worldwide, including in Europe, America and Asia Pacific since 2021.
Recent major developments have included a deal with Neste for the supply of 9.5m litres of locally produced SAF for international flights out of Singapore Changi Airport (SIN) and an agreement with Cathay for the airline to supply 2,400 tonnes of SAF for international flights departing from Seoul Incheon International Airport (ICN), Tokyo Narita International Airport (NRT) and SIN.
