A three-year agreement has been signed between DHL Express and US-based sustainable aviation fuel (SAF) producer Phillips 66 for 240,000 metric tonnes of fuel.
Reportedly, the agreement is one of the largest SAF deals by a US producer and for the air cargo sector.
DHL said the use of SAF under the deal is expected to reduce lifecycle greenhouse gas emissions by some 737,000 metric tonnes compared to conventional jet fuel.
The fuel will be made at the Rodeo Renewable Energy Complex in California, which has a production capacity of 150 million gallons per year of neat SAF.
According to US Energy Information Administration data, the Rodeo facility is the second-largest capacity renewable fuels facility in the US after the Diamond Green Diesel refinery in Norco, Louisiana.
SAF supports DHL’s West Coast operations
The majority of the SAF from Phillips 66 will be delivered to Los Angeles International Airport, which is DHL’s US West Coast Gateway.
In future, DHL intends to expand deliveries to its other West Coast operations, including to San Francisco International Airport (SFO).
“This agreement with Phillips 66 is a significant milestone for DHL Express as we work towards our sustainability goals,” stated Travis Cobb, EVP global operations and aviation at DHL Express.
By securing a reliable supply of SAF, DHL Express is not only reducing its carbon emissions – and those within its customers’ supply chains, but also “setting a precedent for the logistics and air cargo industries in the US”.
DHL Express has been actively securing SAF partnerships worldwide since 2021, part of its broader strategy to achieve net-zero greenhouse gas emissions by 2050.
