FedEx and Neste Achieve Major SAF Procurement Milestone
Sustainable aviation fuel (SAF) is increasingly seen as crucial in reducing emissions within the aviation sector, potentially contributing to 65% of the required reductions to achieve net-zero CO₂ emissions by 2050, according to the International Air Transport Association.
As part of this effort, FedEx, the world's largest express cargo airline, and Neste, a global leader in SAF production, have partnered to achieve a major milestone in sustainable transportation.
The pair have agreed on a substantial supply chain development at Los Angeles International Airport (LAX), where FedEx will receive 8,800 tonnes of blended SAF—making it the largest SAF purchase by a US cargo line at LAX to date.
Collaborating on SAF
The collaboration between these two industry leaders focuses on supplying blended fuel, with a minimum of 30% neat Neste 'MY SAF'.
This blend integrates seamlessly with existing jet fuels, offering a drop-in solution that requires no modifications to existing aircraft engines or fuelling infrastructure.
The initiative is expected to account for roughly 20% of FedEx’s annual jet fuel consumption at LAX, according to FY25 fuel use forecasts.
Richard Smith, Chief Operating Officer, International and CEO, Airline at FedEx, outlined the company's deep commitment: “As the world’s preeminent express transportation company, our initial US deployment of this fuel advances our sustainability goals and bolsters the aviation industry’s efforts to source and use more SAF.”
Neste 'MY SAF' promises substantial environmental benefits, reducing greenhouse gas emissions by up to 80% over the fuel’s lifecycle compared to traditional jet fuel. The fuel is derived from 100% renewable waste and residue, such as used cooking oil and animal fat waste.
FedEx’s SAF journey
FedEx's engagement with sustainable aviation technology isn’t new. The company has long been co-creating solutions with industry pioneers.
Beyond procuring SAF, efforts such as collaborating with the ecoDemonstrator flight-test programme and modernising its aircraft fleet highlight FedEx’s multifaceted approach to reducing fuel consumption and enhancing operational efficiency.
Karen Blanks Ellis, Chief Sustainability Officer at FedEx, adds: “Procuring SAF is an important component of our aviation emissions-reduction strategy in the coming years and we are pleased to have executed a deal with Neste to begin using this fuel in our air operations.”
The aviation segment represents FedEx's largest fuel use globally, presenting the biggest opportunity to lower emissions – an essential step towards its goal of carbon-neutral operations by 2040.
Complementing these efforts, FedEx achieved a 30% reduction in aviation emissions intensity from a 2005 baseline during its fiscal year 2024, a testament to its longstanding sustainability commitments.
Producing SAF with Neste
Neste is expanding its SAF production capabilities significantly by 2025. A key development is the company’s enhanced production facility in Rotterdam, capable of generating up to 500,000 tons annually, boosting its overall production capacity to 1.5 million tons per year globally.
Carl Nyberg, Senior Vice President, Commercial, Renewable Products at Neste, says: “Neste is excited to work with FedEx and support their ambitious goal of reaching carbon-neutral operations by 2040 with our SAF.”
As part of its global strategy, Neste continues to develop facilities such as those in Singapore and Porvoo, Finland, while aiming to further expand its Rotterdam refinery's capacity.
This commitment involves regulatory initiatives like the ReFuelEU Aviation Regulation, designed to accelerate the aviation industry's transition towards low-carbon fuels.
The partnership between FedEx and Neste exemplifies how collaborations can effectively mitigate environmental impacts within the transportation sector, emphasising the role of SAF in a sustainable future.
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