DSV, Microsoft Secure 11M Gallons of SAF via United Partnership

A major cross-industry partnership has secured 11 million gallons of Sustainable Aviation Fuel (SAF) in a deal designed to accelerate corporate decarbonization. The agreement involves logistics firm DSV, technology giant Microsoft, United Airlines, and energy company Phillips 66. The volume of SAF is expected to reduce lifecycle Greenhouse Gas (GHG) emissions by approximately 100,000 tonnes compared to conventional jet fuel.

The collaboration utilizes a book-and-claim system, a critical mechanism for scaling corporate investment in alternative fuels. This model allows DSV and Microsoft to fund the purchase of SAF and claim the associated environmental benefits for their Scope 3 emissions reporting, while United Airlines will physically take delivery and use the fuel in its operations. This structure addresses the significant cost premium of SAF and spreads the financial burden across the aviation value chain.

Agreement Structure and Verification

Under the terms of the agreement, Phillips 66 will produce the 11 million gallons of SAF at its Rodeo Renewable Energy Complex in California. United Airlines, a key partner in the initiative, will consume the fuel. The emissions reductions are then allocated to DSV and Microsoft through Sustainable Aviation Fuel Certificates (SAFc), which are tracked on a dedicated registry to ensure transparency and prevent double-counting of the environmental attributes.

The entire process is verified by the International Sustainability and Carbon Certification (ISCC) system. According to the ISCC, this third-party verification is essential to confirm that the fuel meets strict sustainability criteria and that the lifecycle emissions reductions are accurately quantified. This robust accounting framework provides the assurance corporate partners need to invest in SAF as a legitimate tool for meeting their climate targets.

Industry Impact and Collaboration

Executives from the partner companies emphasized that such cross-sector collaboration is essential to making SAF commercially viable at scale. According to statements from the companies, United's Managing Director of Global SAF and Sustainability, Lauren Riley, noted this is the largest single-customer SAF agreement in the history of the airline's Eco-Skies Alliance program. This program was specifically designed to facilitate corporate co-investment in SAF.

For stakeholders, the impacts are significant. Corporate freight customers using DSV's services gain access to verified Scope 3 emissions reductions for their own supply chain reporting. For Phillips 66, the deal secures a large, guaranteed offtake for its renewable fuels business, supporting its production scale-up. For United Airlines, the partnership substantially reduces the 'green premium' cost burden of purchasing lower-emission fuel.

Frank Sobotka of DSV highlighted the role of logistics integrators in connecting corporate climate goals with the realities of fuel production. Similarly, Ronald Sanchez of Phillips 66 focused on the importance of turning corporate sustainability demand into a reliable, real-world supply of renewable fuels.

Historical Context and Precedents

The structure of this deal builds on established trends in the aviation industry. The United Airlines Eco-Skies Alliance, which launched in April 2021 with an initial collective purchase of 3.4 million gallons, created the framework that enabled this significantly larger agreement. The current 11-million-gallon deal demonstrates a substantial scaling of this corporate co-investment model.

Furthermore, the partnership echoes a similar large-scale agreement from November 2025, when DHL Express secured 83 million gallons of SAF from Phillips 66 over three years. That event established a clear precedent for major logistics firms to partner directly with fuel producers for SAF offtake, using the book-and-claim system to translate the investment into reportable emissions reductions.

What Comes Next

According to the SAF Certificate Registry (SAFc), the delivery and tracking of the 11 million gallons of SAF under this agreement is confirmed to take place throughout 2026 and 2027. The registry, supported by organizations like RMI, will provide the crucial infrastructure to ensure that the environmental claims made by DSV and Microsoft are unique and auditable.

This deal is part of a broader trend of scaling U.S. SAF production capacity, which reached approximately 30,000 barrels per day by early 2025. This growth is heavily driven by refinery conversions like the Phillips 66 Rodeo facility, which has a stated renewable fuels production capacity of 50,000 barrels per day, equivalent to about 800 million gallons per year.

Why This Matters

This partnership provides a tangible blueprint for how non-aviation corporations can directly fund the decarbonization of air transport. By decoupling the physical fuel from its environmental attributes, the book-and-claim model allows investment to flow where it is most needed, helping airlines overcome the economic hurdles of SAF adoption. The scale of this agreement signals a maturing market for corporate-sponsored SAF and a critical step toward making lower-emission flight a commercial reality.