Global delivery giant FedEx announced the purchase of more than three million gallons of blended sustainable aviation fuel (SAF) over one year from producer Neste, with the fuel to be used for cargo flights out of Los Angeles International Airport (LAX), marking FedEx’s first major U.S. SAF deployment.

According to FedEx and Neste, the blended fuel will include a minimum of 30% neat SAF, and will account for roughly a fifth of all jet fuel consumed annually by FedEx at LAX.

In 2021, FedEx announced a goal to achieve carbon neutrality in operations by 2040, allocating $2 billion in investments to reach its goal, with a focus on key areas including vehicle electrification, sustainable energy, and carbon sequestration.

Karen Blanks Ellis, Chief Sustainability Officer and Vice President of Environmental Affairs at  FedEx, said:

“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. 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.”

Finland-based Neste provides renewable and circular solutions for sectors including road transport, aviation, and polymers and chemicals. The company’s products include Neste MY Sustainable Aviation Fuel, made from sustainably sourced renewable waste and residues such as used cooking oil and animal fat waste, and compatible with existing aircraft engines and airport fuel infrastructure, and Neste MY Renewable Diesel, produced from renewable raw materials using a hydrogen treatment process, that can be used as a drop-in replacement to fossil diesel, to significantly reduce GHG emissions.

According to Neste, the company’s Neste MY Sustainable Aviation Fuel reduces greenhouse gas emissions by up to 80% over the fuel’s life cycle, compared to using conventional jet fuel. Neste’s global SAF production capability is 1.5 million tons (around 515 million gallons) per year.

Carl Nyberg, Senior Vice President, Commercial, Renewable Products at Neste, said:

“Neste is excited to work with FedEx and support their ambitious goal of reaching carbon-neutral operations by 2040 with our SAF. Recognizing the important role of air cargo in the global economy, FedEx is demonstrating how this industry can leverage available lower-emission solutions like SAF to reduce its environmental impact. We look forward to further strengthening our cooperation.”