FedEx signed an agreement to secure over three million gallons of blended sustainable aviation fuel (SAF) for delivery at Los Angeles International Airport (LAX).
The agreement was signed with Neste, a producer of sustainable aviation fuel and renewable diesel. FedEx purchased blended fuel from Neste to include a minimum of 30% neat Neste MY Sustainable Aviation Fuel.
As used in its blended form, the fuel will account for roughly one-fifth of all jet fuel consumed annually by FedEx at LAX and is the largest SAF purchase executed by a U.S. cargo airline at LAX to date. Delivery of the fuel began earlier this month and will continue over the next year.
“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,” said Karen Blanks Ellis, chief sustainability officer and vice president of environmental affairs at FedEx, in a statement. “Our aviation network represents the largest amount of FedEx fuel use globally and, as a result, is our biggest opportunity to drive down emissions. As we work toward our goal of carbon-neural operations by 2040, we need the SAF market to continue to grow to meet industry demand.”
This fuel purchase by FedEx builds upon years of the company’s efforts to co-create sustainable aviation technologies with other industry leaders, including the ecoDemonstrator flight-test program with Boeing, the world’s first commercial airplane flight using 100% SAF in both engines that was conducted in 2018.
In addition to the procurement of SAF, FedEx is pursuing multiple avenues to improve efficiency and reduce fuel consumption in its aviation operations overall, including aircraft fleet modernization, fuel conservation initiatives and flight planning optimization. Collectively, fleet modernization and fuel-saving efforts enabled FedEx to successfully achieve its goal of a 30% reduction in aviation emissions intensity in fiscal year 2024 from a 2005 baseline.