FedEx secures 20m gallons of neat SAF
FedEx aims to address the immediate operational footprint while also sending signals to the producers that long-term demand for SAF exist through the large-scale supply contracts.
US logistics giant FedEX announced signing of new supply agreements to secure more than 20m of neat sustainable aviation fuel through to the end of 2027 as it scales up environmental commitments.
The agreements will see SAF integrated into the logistics carrier’s air operations across five major US hubs which include Miami, Oakland, Newark Liberty, John F. Kennedy and Dallas Forth Worth international airports. The fuel will be delivered to aircraft with blend ratios ranging between 30% and 50% depending on the local infrastructure capacity.
“The latest agreements represent an expansion of SAF within the FedEx air network enabled, in part, by state and federal level incentives,” said Greg Paulus, vice president of Enterprise Sourcing.
FedEx said the procurement of neat SAF marks a crucial step for the group’s interim target of sourcing 30% of its jet fuel from alternative sources by 2030. The company has an overarching target to reach net zero carbon emissions by 2040.
The logistics giant said the fuel procurement was supported by the federal as well as state-level financial incentives. The announcement builds on the FedEx’s 16.5m gallons of SAF purchases across five airports.
“SAF is one of the most impactful decarbonisation solutions available to aviation today and an important part of our approach to reducing emissions,” said Karen Blanks Ellis, chief sustainability officer and vice president of Environmental Affairs at FedEx. “For the market to grow, supply needs to be reliable, affordable, and sustainable. Expanding our procurement allows us to employ more SAF in our network while bolstering the demand for greater production and scale.”
FedEx aims to address the immediate operational footprint while also sending signals to the producers that long-term demand for SAF exist through the large-scale supply contracts.
The company’s leadership said as the broader SAF production market matures, it will review opportunities to expand SAF usage wherever supply lines, airport infrastructure and commercial economics align.