DHL Express has taken a significant step towards decarbonising its global air network through a major new agreement with Phillips 66 to dramatically increase the use of sustainable aviation fuel (SAF) across its U.S. operations. The multi-year deal represents one of the largest SAF commitments made within the air-cargo sector to date and signals a decisive shift from pilot projects to scaled deployment.
A Major Lift in SAF Supply
Under the agreement, DHL Express will receive more than 240,000 metric tonnes of SAF over a three-year period — equivalent to roughly 83 million gallons. When compared to conventional jet fuel, this volume of SAF is expected to deliver approximately 737,000 metric tonnes of lifecycle greenhouse-gas emissions savings.
Much of the supply will be delivered to DHL’s West Coast gateways, including Los Angeles International Airport, with additional deliveries planned for other major U.S. airports. The fuel will be produced at Phillips 66’s renewable energy facility in California, which has been developed to supply SAF at scale.
Why the Agreement Matters
For DHL, this partnership is a cornerstone in its journey towards cleaner aviation. Air transport is the most carbon-intensive part of the company’s logistics chain, making SAF essential to achieving its target of net-zero emissions by 2050. The company also aims for more than 30 per cent of its air-cargo fuel mix to come from SAF by 2030.
For Phillips 66, the agreement strengthens its position as one of the leading producers of renewable jet fuel, showcasing how traditional energy companies are adapting their portfolios to support the global transition to lower-carbon transport.
A Boost for the Logistics and Aviation Sectors
The aviation industry faces enormous decarbonisation challenges, with no widespread alternative to liquid jet fuel currently available for long-haul or heavy-cargo operations. SAF remains the most viable near-term solution, but global supply is limited and costs remain high.
This agreement sends a powerful market signal:
- Demand is rising and major logistics players are prepared to commit to long-term SAF usage.
- Producers are scaling up, demonstrating confidence in the economics of renewable jet fuel.
- Cross-sector partnerships are becoming essential, linking the energy and logistics industries to accelerate the availability and adoption of cleaner fuels.
Opportunities and Challenges Ahead
While the scale of this deal is significant, broader sector-wide transformation will require sustained investment and policy support. Key challenges include:
- Expanding production capacity to meet rising demand from airlines and cargo operators.
- Reducing cost premiums, which currently sit well above the price of traditional jet fuel.
- Ensuring feedstock sustainability, particularly as global demand for renewable fuels grows.
- Building infrastructure capable of handling and distributing SAF across major airports.
Nevertheless, agreements of this size are vital steps toward mainstream adoption. They help improve cost efficiency through higher production volumes and strengthen the business case for renewable aviation fuels.
A Blueprint for the Future
DHL Express and Phillips 66 have set a new benchmark for SAF adoption in global logistics. The agreement demonstrates how collaboration, long-term planning and investment can accelerate the decarbonisation of aviation — one of the most challenging sectors to transform.
If replicated across the industry, deals like this could dramatically reduce aviation emissions over the next decade and reshape how global supply chains approach sustainability.