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FedEx partners with Neste for large-scale sustainable aviation fuel supply

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FedEx partners with Neste for large-scale sustainable aviation fuel supply
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Frederick W. Smith FedEx Corporation Founder and Executive Chairman | FedEx

FedEx has announced a significant agreement with Neste, a leading producer of sustainable aviation fuel (SAF) and renewable diesel. Under this deal, FedEx will receive over three million gallons of blended SAF at Los Angeles International Airport. The blend includes at least 30% of Neste MY Sustainable Aviation Fuel. This supply will account for about one-fifth of FedEx's annual jet fuel consumption at the airport, marking the largest order of its kind by an air cargo company in the U.S. The first deliveries began in early May and will continue for a year.

Karen Blanks Ellis, Chief Sustainability Officer and Vice President of Environmental Affairs at FedEx, stated: "In the coming years, procuring sustainable aviation fuel will be an important part of FedEx's strategy to reduce emissions from aviation. We are pleased to have reached an agreement with Neste to officially use this batch of fuel in our aviation operations."

Richard Smith, Chief Operating Officer for International Business and CEO of Aviation Business at FedEx, remarked: "As a global leader in express transportation, FedEx is proud to have achieved this milestone."

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Carl Nyberg, Executive Vice President for Renewable Products at Neste, commented: "Neste is delighted to partner with FedEx through our sustainable aviation fuel."

This initiative highlights FedEx's ongoing efforts toward sustainability. Since 2018, it has collaborated on innovative projects like the ecoDemonstrator flight program with Boeing. In fiscal year 2024, through fleet modernization and fuel-saving measures, FedEx achieved a 30% reduction in aviation carbon emission intensity compared to its 2005 baseline.

Sustainable aviation fuels offer lower carbon emissions than traditional fossil-based jet fuels due to their production process using renewable waste materials like used cooking oil and animal fat waste.

FedEx continues its sustainability efforts globally and particularly in China:

- Electrification: 20% of its pickup and delivery fleet in China is electric.

- Infrastructure: Solar power systems at facilities like Beijing Ground Operations Station reduce CO2 emissions.

- Fuel-saving measures: Eco-driving training programs have reduced fuel usage by 15%.

- Digital tools: Tools provide customers historical emission data for cross-border shipments.

- Environmental projects: Initiatives include tree planting and beach cleanups.

- Workplace sustainability: Employees participate in reducing water, electricity, paper use.

- Recycling initiatives: Old uniforms are repurposed into branded bags.

For more information on FedEx's sustainability strategy visit their website.

Organizations Included in this History
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