DHL Express signs multi-year SAF offtake agreement with Phillips 66
Global express service provider DHL Express announced a sustainable aviation fuel (SAF) offtake agreement with Phillips 66 for the delivery of over 240,000 metric tons of SAF over a three-year period.
The SAF procured under the agreement will be delivered to Los Angeles International Airport (LAX), the logistics company’s West Coast gateway, with future deliveries to other West Coast airports such as San Francisco International Airport (SFO).
DHL said it plans to utilise a book-and-claim approach to manage its carbon footprint through the use of sustainable fuels in the aviation 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 150m gallons per year of neat 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 U.S,” said Travis Cobb, EVP global operations and aviation at DHL Express.
DHL’s agreement with Phillips 66 is one of its largest SAF deals by a US producer and for the overall air cargo sector.
“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,” said Brian Mandell, EVP marketing and commercial at Phillips 66.
This agreement will contribute significantly to DHL’s GoGreen Plus service, which enables customers to reduce their Scope 3 greenhouse gas emissions using SAF. Through innovative solutions like this, DHL Express continues to lead the logistics industry in addressing climate change while providing reliable and efficient services to its customers.