Phillips 66 to deliver SAF at California for British Airways

US energy major Phillips 66 has reportedly signed an agreement with British Airways to deliver sustainable aviation fuel (SAF) to the airline for flights departing from California, according to a report by Argus.

The agreement builds on the existing partnership between the two companies in UK. Earlier in March of 2022, Phillips 66 said it delivered UK-produced SAF to British Airways as part of a multi-year agreement. This was the first time that commercially made UK SAF had been used by an airline.

P66 has been delivering the unblended SAF since December from Phillips 66’s 52,000 b/d renewable fuels refinery in Rodeo, California, and is for the airline’s use at Los Angeles International Airport. Phillips 66 said it is delivering SAF to the airline monthly, although future volumes, pricing and other terms of the deal were not disclosed.

The supply agreement follows a Phillips 66 deal announced in December to supply United Airlines with SAF at airports in California and Illinois. The Rodeo site has increased SAF production since its conversion to primarily renewable diesel early last year.

It is notable that British Airways is receiving SAF in the US, which has various policies that encourage production of the lower-carbon fuel but does not require consumption as in the EU and UK. US-produced SAF is eligible for a clean fuel tax credit starting this year that offers larger subsidies to fuels as they produce fewer emissions, and blending in California can generate credits under the state’s low-carbon fuel standard.

Phillips 66 uses domestic and global feedstocks to produce biofuels at Rodeo, including vegetable oils, waste animal fats and used cooking oil.

The company has also eyed potentially co-processing renewable feedstocks alongside petroleum at some existing US refineries, adding to co-processing capacity at its 221,000 b/d Humber refinery in the UK.