Houston, Texas-based energy provider, Phillips 66 will deliver 240,000 metric tons (83 million gallons) of Sustainable Aviation Fuel (SAF) to DHL Express over the next three years. Thanks to the agreement, the parcel delivery company will be able to reduce its cargo fleet’s greenhouse gas emissions by approximately 737,000 metric tons compared to conventional jet fuel burn. In addition to this news, DHL announced the commissioning of a new carbon neutral logistics center near its global hub, Leipzig-Halle Airport.
The SAF purchased by DHL will be produced at Phillips 66’s Rodeo Renewable Energy plant in California, one of the world’s largest renewable fuels facilities. It has a production capacity of 150 million gallons per year of neat SAF, i.e. SAF that is not blended with conventional jet fuel. The largest amount of the fuel will be delivered to DHL at Los Angeles International Airport (LAX), the integrator’s U.S. West Coast Gateway. Further supplies include San Francisco International (SFO), and other West Coast Airports that are part of DHL’s widespread air network. Currently, DHL operates 10 to 15 daily flights to LAX, a mix of domestic and intercontinental services. Based on a cargo flight from Frankfurt to Los Angeles, where a B777F or A330F consumes an average of roughly 80 tons of kerosene, the quantity of 240,000 liters of SAF would enable around 3,000 transatlantic flights to be powered by pure biofuel.
Setting a precedent
During the contract signing ceremony, Travis Cobb, EVP Global Operations and Aviation at DHL Express, stated: “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.”
The agreement between DHL and Phillips 66 represents one of the largest SAF deals by a U.S. producer of renewable energy and for the overall air cargo sector, paving the way for future collaborations in the SAF space, both companies state in a press release. Brian Mandell, EVP Marketing and Commercial at Phillips 66, added to the announcement: “This agreement […] 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.”
Lowering the carbon footprint
The contract now agreed with Phillips is one of a whole series of similar agreements between DHL and energy suppliers in Asia Pacific, America and Europe. It exemplifies DHL’s ambitions to lower its air freight carbon footprint effectively. By including the SAF choice in the integrator’s GoGreen Plus service, customers are enabled to reduce their Scope 3 greenhouse gas emissions substantially, thus lowering their carbon footprint.
Headquartered in Houston, Texas, Phillips 66 is a leading integrated downstream energy provider that manufactures, transports and trades chemicals and renewable fuels.
Pushing lower carbon solutions up front
Only recently, Phillips 66 and British Airways signed a deal, guaranteeing the airline the supply of 5 million gallons of SAF (3,525 metric tons). It followed an earlier agreement with United Airlines at Chicago O’Hare Airport over 3 million gallons of SAF, signed 06DEC24.
“We’re focused on both traditional energies and also emerging energies, particularly renewable fuels,” Manager Mandell noted. He also highlighted the transformation of the company’s San Francisco refinery, which now runs 50,000 barrels a day of feedstock.
“We saw an opportunity to convert that refinery into a renewable diesel and sustainable aviation fuel refiner,” said Mandell, referring to the renamed Rodeo Renewable Energy Complex. “Rodeo is part of our newest segment, our renewables segment, and is a great example of how we are evaluating opportunities for lower-carbon solutions.”
New Logistics Center inaugurated
9,200 km east of San Francisco, near Leipzig-Halle Airport, DHL Supply Chain has opened a 34,000 m² logistics center. It supports the company’s ongoing growth and offers strategic capacity for future customers that utilize the nearby Leipzig-Halle airport, DHL’s largest global hub. The Logistics Center is equipped with 27 loading docks. Built to meet the highest sustainability standards (DGNB Gold), the site features photovoltaic systems and energy-efficient LED lighting, reflecting DHL’s goals to support customers with reduced emission logistics.
The facility benefits from well-developed multi-modal transport connections, including access to DHL’s parcel and express network at Leipzig-Halle Airport – home to the world’s largest DHL Express air freight hub for global air freight shipments.
