DHL Express [DHL:GR] has recently announced a seven-year agreement with clean energy and renewable fuels producer World Energy for the procurement of 668 million liters of sustainable aviation fuel (SAF) through sustainable aviation fuel certificates (SAFc), as reported by ESG Today on October 19. This deal stands as one of the largest SAFc agreements in the aviation industry to date. Under this agreement, World Energy will transport the SAF to airports in the Los Angeles area near its manufacturing facility instead of supplying the physical fuel to DHL. This approach allows SAFc buyers, such as DHL to claim emissions reductions by covering the SAF’s production cost, while simultaneously sidestepping the logistical challenges and emissions associated with fuel transport.

This strategic move is expected to assist DHL in reducing approximately 1.7 million tons of carbon dioxide (CO2) emissions over the aviation fuel lifecycle, equivalent to around 77,000 annual carbon-neutral DHL flights in the Americas for one year. Last year, DHL also signed procurement contracts with BP [BP:US] and Neste [NESTE:FH], committing to the purchase of more than 800 million liters of SAF over the next five years. According to DHL’s Sustainability Roadmap released in 2021, the company aims to achieve a minimum of 30% SAF blending for all air transport by 2030. John Pearson, CEO of DHL Express, stated that the significant SAF agreement is designed to inspire more suppliers to accelerate industry-wide production and adoption of SAF.

Sources:

https://www.esgtoday.com/dhl-signs-deal-for-668-million-liters-of-sustainable-aviation-fuel/

https://www.esgtoday.com/dhl-announces-major-sustainable-aviation-fuel-deals-with-bp-neste/

https://rmi.org/press-release/rmi-partners-with-energy-web-foundation-to-build-sustainable-aviation-fuel-certificate-registry/

SAF certificates explained: sustainable aviation fuel certificates