Phillips 66 has won a three-year contract to deliver over 240,000 metric tons of sustainable aviation fuel (SAF) to DHL Group.
“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 150 million gallons per year of neat SAF (i.e. SAF that is not blended with conventional jet fuel)”, DHL said in an online statement.
The bulk of the supply is for the Los Angeles International Airport, “with future intended deliveries to other West Coast airports where DHL maintains operations, such as San Francisco International Airport”, the German logistics giant said.
“The agreement with Phillips 66 represents one of the largest SAF deals by a U.S. producer and for the overall air cargo sector, paving the way for future collaborations in the SAF space”, DHL said.
The volume represents an avoidance of about 737,000 metric tons of lifecycle greenhouse gas emissions, according to DHL.
“DHL Express has been actively securing SAF partnerships worldwide including in the Europe, America and Asia-Pacific regions since 2021, and this new agreement exemplifies its dedication to leveraging sustainable aviation fuels to address its air freight carbon footprint effectively”, DHL said. “This agreement will contribute significantly to DHL’s GoGreen Plus service, which enables customers to reduce their Scope 3 greenhouse gas emissions using SAF”.
Phillips 66 vice president for aviation Ronald Sanchez said in a separate statement, “Our integrated model is a competitive advantage that enables resilience and value creation in the SAF market. Our people, capabilities and assets allow for feedstock optionality; our supply chain agility accounts for an evolving environment”.
Phillips 66 said that earlier this year it had signed agreements to supply SAF to Alaska Airlines, British Airways, Qantas Airlines and United Airlines.
Last year Phillips 66 completed the Rodeo project, converted from the 128-year-old Santa Maria Refinery. The Rodeo Renewable Energy Complex has a capacity of 50,000 barrels per day, using feedstocks such as waste oils, fats, greases and vegetable oils to produce SAF and renewable diesel, according to the company. The facility supplies the West Coast market.
Earlier this year Phillips 66 and NextEra Energy Resources put into operation a 30.2-megawatt solar project at Rodeo.
The solar plant halves Rodeo’s grid demand, avoiding 33,000 metric tons a year of carbon dioxide emissions, according to Phillips 66.
“Situated on 88 acres of land owned by Phillips 66, this is California’s largest on-site dedicated solar facility”, it said in a press release May 8 announcing start-up.
To contact the author, email jov.onsat@rigzone.com
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