FedEx Receives Sustainable Aviation Fuel from Neste at LAX

FedEx Secures Major Sustainable Aviation Fuel Supply from Neste at LAX

FedEx has announced a landmark agreement with Neste, the world’s leading producer of sustainable aviation fuel (SAF) and renewable diesel, to supply over three million gallons of blended SAF at Los Angeles International Airport (LAX). This transaction represents the largest SAF purchase by a U.S. cargo airline at LAX to date and will cover approximately 20% of FedEx’s annual jet fuel consumption at the airport. Deliveries commenced earlier this month and are scheduled to continue throughout the coming year.

Advancing Aviation Emissions Reduction

Under the terms of the agreement, the blended fuel will contain a minimum of 30% neat Neste MY Sustainable Aviation Fuel. Karen Blanks Ellis, FedEx’s chief sustainability officer and vice president of Environmental Affairs, emphasized the strategic importance of SAF in the company’s emissions-reduction efforts. She noted that FedEx’s aviation network accounts for the largest share of the company’s global fuel use, presenting a significant opportunity to reduce carbon emissions. As FedEx pursues its goal of achieving carbon-neutral operations by 2040, Ellis highlighted the necessity of expanding the SAF market to meet growing industry demand.

The aviation sector is under increasing pressure to lower its carbon footprint, yet the widespread adoption of SAF faces several obstacles. High production costs, limited availability, and regulatory challenges continue to restrict broader market penetration. Airlines have raised concerns that the elevated costs associated with SAF could ultimately translate into higher fares for passengers. Meanwhile, competitors in the logistics industry are closely observing FedEx’s initiative, with some expected to adopt similar measures to remain competitive and comply with evolving environmental regulations.

Richard Smith, FedEx’s chief operating officer for International and chief executive officer of its airline division, underscored the significance of this deployment. He described it as a key milestone in advancing the company’s sustainability objectives and supporting the aviation industry’s efforts to increase SAF usage. Smith acknowledged that further growth in the SAF market, alongside other technological innovations, will be essential to achieving long-term environmental goals.

Industry Collaboration and Ongoing Sustainability Efforts

Neste also highlighted the importance of the partnership, with Carl Nyberg, Senior Vice President of Commercial Renewable Products, recognizing FedEx’s leadership in demonstrating how the air cargo sector can adopt lower-emission solutions to reduce its environmental impact.

This latest SAF procurement builds upon FedEx’s longstanding commitment to sustainable aviation. The company has previously collaborated with Boeing on the ecoDemonstrator flight-test program, which in 2018 achieved the world’s first commercial airplane flight powered entirely by 100% SAF in both engines. Beyond SAF acquisition, FedEx continues to modernize its aircraft fleet, implement fuel conservation measures, and optimize flight planning. These initiatives have contributed to a 30% reduction in aviation emissions intensity compared to a 2005 baseline, as of fiscal year 2024.

Sustainable aviation fuel, produced from renewable resources, offers a lower-emission alternative to conventional fossil-based jet fuel. As FedEx and other industry leaders increase their investments in SAF, overcoming cost and supply challenges will be critical to meeting the sector’s ambitious climate targets.