FedEx and Neste Expand SAF use in Emissions Reduction Push
Sustainable aviation fuel (SAF) plays a major role in the aviation industry's path toward reducing emissions, with the International Air Transport Association estimating it could contribute around 65% of the reductions required for net zero CO₂ emissions by 2050.
In the supply chain sector, where logistics and emissions intersect daily, the shift to lower-carbon aviation fuel holds significant implications for global freight networks.
Two major players enabling that shift are Neste and FedEx. Neste is the world’s largest producer of SAF and renewable diesel, while FedEx stands as the largest express cargo airline globally.
The pair have recently committed to a sizable SAF agreement at Los Angeles International Airport (LAX), marking the largest SAF purchase to date by a US cargo airline at that location.
SAF deployment in the FedEx air logistics network
The agreement between FedEx and Neste will see the delivery of 8,800 tonnes of blended SAF to LAX.
The fuel blend includes at least 30% neat Neste ‘MY SAF’ – a form of sustainable aviation fuel that must be blended with conventional jet fuel for use.
As a “drop-in” fuel, neat SAF is compatible with existing aircraft engines and refuelling systems, which means no technical modifications are required.
FedEx estimates that this SAF blend will make up around 20% of its annual jet fuel consumption at LAX for the 2025 financial year. This volume represents a substantial shift in the company’s fuel sourcing and aligns with its broader emissions-reduction goals.
“As the world’s preeminent express transportation company, our initial US deployment of this fuel advances our sustainability goals and bolsters the aviation industry’s efforts to source and use more SAF,” says Richard Smith, Chief Operating Officer, International, and Chief Executive Officer, Airline, FedEx.
“While we know further growth of the SAF market is needed, alongside other innovations, we are proud to celebrate this milestone with our world-class air network.”
According to Neste, MY SAF can reduce greenhouse gas emissions by up to 80% when used in neat form.
The fuel is produced entirely from renewable waste and residue materials, such as used cooking oil and animal fat waste, ensuring it does not compete with food supply chains.
Supply chain implications of SAF investment
FedEx’s involvement in SAF is not new. The company has taken part in multiple collaborations to explore sustainable aviation technologies.
One notable project includes the ecoDemonstrator programme with Boeing, which tested the world’s first commercial flight powered entirely by SAF in both engines in 2018.
Beyond fuel procurement, FedEx also pursues operational strategies to reduce emissions, including fleet modernisation, fuel conservation measures and optimised flight planning.
These efforts together enabled the company to meet a 30% reduction in aviation emissions intensity in fiscal year 2024, using a 2005 baseline. The company set its first targets in this area back in 2008.
“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,” comments Karen Blanks Ellis, Chief Sustainability Officer and Vice President of Environmental Affairs, FedEx.
“Our aviation network represents the largest amount of FedEx fuel used globally and, as a result, is our biggest opportunity to drive down emissions. As we work toward our goal of carbon-neutral operations by 2040, we need the SAF market to continue to grow to meet industry demand.”
Neste’s growing global SAF capacity
Neste has ramped up SAF production significantly already in 2025. Its renewable products refinery in Rotterdam has undergone major upgrades and now produces up to 500,000 tonnes of SAF annually.
Combined with existing production in Singapore and Porvoo, Finland, Neste’s global output has reached 1.5 million tonnes per year, equal to roughly 1.875 billion litres.
The company plans to expand capacity further. By 2027, the Rotterdam facility alone is expected to produce 2.7 million tonnes of renewable products yearly, with overall renewable fuel capacity rising to 6.8 million tonnes.
SAF will make up 2.2 million tonnes of this volume.
This expansion supports European policy efforts such as the ReFuelEU Aviation Regulation, which aims to accelerate adoption of low-carbon fuels across the aviation industry.
With air cargo being among the most emissions-intensive forms of transport, SAF adoption by freight giants like FedEx represents a step toward reducing the sector's environmental footprint.
“Neste is excited to work with FedEx and support their ambitious goal of reaching carbon-neutral operations by 2040 with our SAF,” says Carl Nyberg, Senior Vice President, Commercial, Renewable Products at Neste.
“Recognising 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.”
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