DHL Group has forged a significant agreement with Phillips 66, one of the leading energy products manufacturers in the U.S., to acquire over 240,000 metric tons of sustainable aviation fuel (SAF). This procurement aims to strategically support DHL’s ambition to minimize its carbon footprint and align with its broader sustainability goals. By introducing SAF into its logistics operations, DHL seeks to establish a precedent in environmental responsibility within the logistics and aviation sectors.
DHL’s new agreement with Phillips 66 signifies a concerted effort to increase environmental sustainability within logistics. A similar trend has been observed in previous years when DHL committed €7 billion to sustainability initiatives. This included plans for a zero-emissions fleet by mid-century. Their ambitious targets appear significantly advanced by this SAF procurement, suggesting a continuous progression towards eco-friendly operations.
What Does The SAF Agreement Include?
Key elements of the agreement involve Phillips 66 supplying SAF from its Rodeo Renewable Energy Complex in California. Having transitioned from an oil refinery to a renewable energy facility, this complex is capable of producing 800 million gallons annually of renewable fuels, including SAF. This strategic move aims to cut DHL’s lifecycle greenhouse gas emissions by 737,000 metric tons compared to conventional jet fuel.
How Will This Impact DHL’s Sustainability Objectives?
The SAF acquisition feeds into DHL’s Sustainability Roadmap, launched in 2021, framing efforts to reduce CO2 emissions and advance zero-emission technology. These efforts are part of broader targets to achieve a mix of more sustainable fuel alternatives exceeding 30% in a decade. Enhancing this initiative is DHL’s GoGreen Plus service, designed to help customers achieve Scope 3 GHG emission reductions.
Travis Cobb, EVP of Global Operations and Aviation at DHL Express, emphasized the significance of securing SAF for the company and industry.
“This agreement with Phillips 66 is a significant milestone for DHL Express as we work towards our sustainability goals,” he stated.
Moreover, delivering SAF predominantly to Los Angeles Airport, with potential expansion to other West Coast sites, reflects logistical scalability in addressing carbon emissions.
Phillips 66’s ambitions for SAF market leadership are echoed by Brian Mandell, EVP Marketing and Commercial.
“This agreement between Phillips 66 and DHL demonstrates our shared commitment to SAF market leadership and credible action in the growing SAF industry,” he explained.
Such strategic alliances pave clearer pathways for industries seeking decarbonization.
Integration of SAF into DHL’s operations is poised to influence the logistics sector’s approach to sustainable practices. Cooperation with partners like Phillips 66 highlights a unified drive towards lower emissions and more environmentally responsible operational procedures. As industries worldwide recognize the need for carbon reduction, agreements like this provide a narrative of proactive environmental stewardship and collaborative commitment.
DHL’s advancement with SAF procurement suggests an actionable blueprint for other logistics companies aiming to integrate sustainable fuel technologies into their operations. The initiative aligns with a broader industrial trend towards sustainability, reflecting significant efforts by companies to meet global environmental standards and policies. Given the current momentum, continuing collaborations and innovations in fuel technology will be critical in the larger decarbonization landscape.
