FedEx expands SAF purchases and boosts demand for alternative aviation fuel

Source:  Spglobal
SAF авіаційне паливо

FedEx has signed new agreements to purchase more than 20 mln gallons of neat sustainable aviation fuel (SAF) for delivery through 2027. The fuel will be supplied for the company’s operations at five major US airports — Newark Liberty, Oakland, Miami, JFK and Dallas Fort Worth.

Depending on the airport, SAF will account for 30% to 50% of the fuel blend. The new agreements significantly expand FedEx’s previous program, under which the company secured around 5 mln gallons of neat SAF from 2025 and deployed 16.5 mln gallons of blended fuel.

FedEx aims to source 30% of its jet fuel from alternative sources by 2030. The company said the new agreements were enabled in part by federal and state-level incentives in the US.

The increase in long-term procurement could provide an additional demand signal for the US SAF market and support investment in new production capacity. However, FedEx did not disclose the suppliers, feedstocks, production pathways or pricing terms of the new agreements.

The company plans to continue evaluating opportunities to expand SAF use across its aviation network where fuel availability, infrastructure and economics support further deployment.

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