DHL and Phillips Sixty-Six Forge Landmark Sustainable Aviation Fuel Partnership

West Coast Supply Boost

DHL Express has secured two hundred forty thousand metric tonnes of sustainable aviation fuel over three years in partnership with Phillips Sixty Six. Initial deliveries begin at Los Angeles International Airport with expansion to other West Coast hubs. The arrangement is projected to avoid seven hundred thirty seven thousand tonnes of greenhouse gas across the term, making it one of the largest SAF deals in United States cargo aviation.

Production at Rodeo Renewable Energy Complex

Fuel will come from the Phillips Sixty Six Rodeo Renewable Energy Complex in California, a converted refinery now dedicated to renewable products. By processing waste oils into drop in jet fuel, the site shows how legacy assets can adapt quickly to low carbon markets while creating highly skilled green jobs.

Insight for Logistics Planners

The contract uses a book and claim framework. This means DHL can attribute emission reductions to flights anywhere in its network without physically moving the fuel, giving shippers precise carbon accounting tools alongside reliable express service.

Strategic Value

· Long term volume advances DHL path toward a net zero goal by twenty fifty.

· Phillips Sixty Six secures predictable offtake supporting further investment in renewable capacity.

· Regulators gain a high visibility proof of concept for incentive structures that scale alternative fuels.

Market Momentum

The transaction is likely to influence peers. As cargo carriers face rising stakeholder pressure on Scope Three emissions, dependable SAF supply becomes a differentiator rather than a marketing add on. High volume agreements improve demand visibility for producers, unlocking financing for additional facilities.

Conclusion

By linking robust cargo demand with advanced refining capability, DHL and Phillips Sixty Six turn climate ambition into operational reality. The partnership reinforces confidence that collaborative supply chains can accelerate aviation decarbonisation at meaningful scale.

Source – ESG News