Key Takeaways
• FedEx will use over three million gallons of Neste MY Sustainable Aviation Fuel at LAX starting May 2025.
• The fuel blend contains at least 30% pure SAF, reducing emissions up to 80% compared to conventional jet fuel.
• This deal covers about 20% of FedEx’s annual jet fuel needs at LAX—the largest SAF purchase by a U.S. cargo airline there.
Neste has begun supplying sustainable aviation fuel to FedEx at Los Angeles International Airport, marking a key move for both companies and the aviation industry as a whole. This new supply began in May 2025, bringing more than three million gallons of blended Neste MY Sustainable Aviation Fuel to FedEx over a period of one year. This deal represents the largest sustainable aviation fuel purchase by a U.S. cargo airline at LAX so far and is expected to cover about one-fifth of all jet fuel that FedEx normally uses at this airport.
A Major Shift for FedEx: The Importance of Sustainable Aviation Fuel
FedEx, one of the world’s largest cargo airlines, will now start using a fuel blend made possible by Neste, a top renewable fuel producer. The agreement says that the fuel supplied will contain a minimum of 30% neat—or unblended—Neste MY Sustainable Aviation Fuel, with the balance being regular jet fuel. Blending is standard practice in aviation, as sustainable fuels usually need to be mixed with fossil-based jet fuels before they are used. The key benefit of this ‘drop-in’ fuel is that it can be used in regular airplane engines and fueling systems without any changes. This reduces barriers for airlines wanting to use cleaner fuels right now.
Karen Blanks Ellis, who serves as the Chief Sustainability Officer and Vice President of Environmental Affairs at FedEx, highlighted why this supply deal matters. She 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.” Her statement shows that this step isn’t just about testing new technology or meeting a short-term goal; it’s central to FedEx’s long-term plan to reduce the environmental impact of its operations.
Environmental Gains: What Makes Neste’s Fuel Different
Neste produces its MY Sustainable Aviation Fuel from 100% renewable waste materials. These include things like used cooking oil and animal fat waste. By using these materials, Neste creates a fuel that, over its full life cycle, releases up to 80% less greenhouse gas compared to normal jet fuel. Greenhouse gases are a main driver of climate change, so reducing them is a global priority—especially in the aviation sector, where emissions have proven tough to cut in the past.
The focus on sustainability is crucial for FedEx. The company has announced its goal to reach carbon-neutral operations by 2040. This means, by that year, FedEx wants to balance the amount of carbon dioxide it releases with the same amount removed from the atmosphere. For an airline, fuel use is the biggest piece of its carbon footprint. That makes switching to sustainable aviation fuel one of the most powerful tools available today for cutting emissions.
Not only does Neste’s sustainable aviation fuel burn cleaner, but it also uses less polluting material to begin with. The product avoids competing directly with food resources or taking up new farmland, because it is made from leftovers that would otherwise be thrown away. By finding a new use for waste, Neste adds another environmental benefit to the mix.
How the Deal Works: Key Details of the Supply Agreement
The Neste-FedEx agreement is both practical and trailblazing. Over the next year, FedEx will receive around 8,800 metric tons—over three million gallons—of sustainable aviation fuel at Los Angeles International Airport. That’s a sizable share for just one hub airport, covering about 20% of all the fuel FedEx uses at LAX annually. For context, the aviation industry worldwide used more than 300 million tons of jet fuel in 2024, but less than 1% of that was SAF. That means every major supply agreement like this one helps move the number higher and bend the industry toward more responsible fuel choices.
The minimum 30% neat SAF in the blend is notable, too. It balances the need to move quickly with practical limits, since commercial aircraft engines are currently certified to operate with certain ratios of SAF. Using this blend, FedEx can adopt cleaner fuel right away without worrying about compatibility issues.
Neste’s MY Sustainable Aviation Fuel is delivered directly into the existing fueling infrastructure at LAX. This “drop-in” feature is very important, as it means airlines don’t need expensive upgrades or new equipment to start using greener fuel. For airports and airlines alike, this makes the transition much more feasible.
Industry Impact and Market Trends: Why This Deal Matters Globally
This agreement between Neste and FedEx has significance that extends beyond Los Angeles or even the United States 🇺🇸. For Neste, this is a major step in the world’s largest aviation fuel market. As a leader in renewable fuel production, Neste is sending a strong message that sustainable aviation fuel is ready for wider adoption, not just in Europe but also in North America.
Carl Nyberg, Senior Vice President of Commercial Renewable Products at Neste, summed up this enthusiasm: “Neste is excited to work with FedEx and support their ambitious goal of reaching carbon-neutral operations by 2040 with our SAF.” This partnership shows that large cargo carriers are not waiting for mandates or future technology—they are acting now to make air travel less damaging for the planet.
While the use of SAF is growing, the fact remains that in 2024, it still made up less than 1% of all jet fuel used worldwide. The problem lies in both production and cost. Making sustainable aviation fuel is still a limited process, and the price is often higher than fossil fuel alternatives. That’s why big deals with major airlines are so important—they help create steady demand and encourage companies to build more SAF production facilities.
As reported by VisaVerge.com, this deal sets an example for other airlines and airports to follow by showing how aviation companies can use available solutions now to start reducing their emissions.
The Role of Airports: Why LAX Matters in This Shift
Los Angeles International Airport is one of the busiest airports in the world, handling both passenger and cargo flights. Having FedEx commit to such a large SAF supply at this hub is important for several reasons:
- LAX can act as a showcase for future SAF adoption across more U.S. airports.
- Large, visible volume deals like this one help justify infrastructure investments, making it easier for other airlines to access SAF.
- With millions of gallons moving through LAX, ground crews, airline planners, and airport staff will all gain real-world experience with handling, blending, and using SAF.
Historically, airports have played a big role in how quickly airlines can access new fuel options. Once one major carrier builds successful systems at an airport, it often encourages others to try the same.
What This Means for the Future of Aviation Emissions
The adoption of Neste’s sustainable aviation fuel by FedEx at LAX signals more than just a shift in supply chains. It is a clear message that the industry is changing. Here’s what this could mean looking forward:
- More demand for SAF will likely bring more production capacity.
- As availability goes up, prices can come down, making SAF more common for both cargo and passenger airlines.
- The move helps build public trust that companies are acting seriously about climate issues.
- With more blends in use, engine-makers and regulators may approve higher SAF percentages soon, making emissions cuts even larger.
FedEx’s move is not just about one airport or one year. If it proves successful, similar deals could be made at other airports, and other airlines could follow suit.
How Sustainable Aviation Fuel Works: A Simple Explanation
Sustainable aviation fuel is made from sources like used cooking oil, animal fat waste, and other materials that people would usually throw away. The process takes these waste materials and changes them into a fuel that works the same as regular jet fuel. The reason it is called ‘sustainable’ is that its carbon emissions are much lower when looking at the entire journey from production to burning in a jet engine.
For airlines, the main benefit is that it is a “drop-in” fuel—meaning you do not need to change engines, fuel trucks, or storage tanks. It just goes directly into the system already in place.
Neste MY Sustainable Aviation Fuel is produced to work with all current regulations and certifications, so airlines like FedEx don’t need to worry about safety issues. As it is blended, it meets all current technical standards.
FedEx’s Climate Strategy: A Step Toward Bigger Goals
For FedEx, switching to sustainable aviation fuel is just one part of a much bigger strategy. The company has committed to making all its operations carbon-neutral by 2040. This means not just switching to cleaner fuel, but also looking into new technologies, changing flight routes or times to be more efficient, and improving how fleets are managed.
Aviation fuel is the single largest part of FedEx’s carbon footprint worldwide. So, cutting emissions here has the most direct effect.
Karen Blanks Ellis of FedEx stated that acquiring SAF is “an important component of our aviation emissions reduction strategy in the coming years.” In other words, this fuel deal is a piece of a much larger puzzle, but it’s a crucial one for getting to the overall goal.
Broader Implications for Airlines and Policy
This agreement will also have ripple effects outside just FedEx and Neste. Other cargo and passenger airlines might see this as a model. If more companies commit to buying and using SAF, producers like Neste will have a stronger reason to build bigger plants and bring down the production cost.
At the same time, airport authorities and government policy makers can look to this experience for help in shaping new rules or incentives. If large-scale, real-world use of SAF can be shown to work safely and reliably, it reduces the risk for future policy changes.
Because sustainable aviation fuel is made in a way that does not require new farm land or food crops, it avoids some problems that come with other types of biofuels. That makes it easier for governments and environmental groups to support it.
Challenges and Opportunities
Even with strong progress like this, challenges remain. The most pressing issues include:
- Expanding SAF production to meet growing demand.
- Keeping costs low enough for broad industry use.
- Ensuring supply chains can provide the necessary waste materials.
But there are big opportunities, too:
- Airlines and producers are now showing that supply deals can reach commercial levels.
- Every successful deal encourages more airports to allow SAF.
- All of this work lays the foundation for even greener fuels in the years ahead.
Conclusion: Looking Ahead
The supply of Neste MY Sustainable Aviation Fuel to FedEx at Los Angeles International Airport marks a big step forward for both companies and the aviation industry. As more airlines and airports follow this example, the hope is that sustainable aviation fuel moves from being a rare option to a standard part of aviation.
FedEx’s leadership in this area could help show airlines all over the world how practical and important sustainable fuels are for meeting environmental goals. By making real progress today, FedEx and Neste are helping to build a cleaner future for flight.
For readers who want to know more about sustainable fuels and their role in aviation, the U.S. Department of Energy’s page on Sustainable Aviation Fuel has helpful background information. This partnership is a sign of changing times, with both Neste and FedEx working together to shape the future of air travel and goods delivery on a cleaner, greener path.
Learn Today
Sustainable Aviation Fuel (SAF) → A jet fuel alternative made from renewable waste, cutting greenhouse gas emissions up to 80% compared to fossil fuels.
Drop-in Fuel → A fuel type that can be used in existing engines and infrastructure without modifications, simplifying adoption for airlines and airports.
Carbon-neutral Operations → An operational goal where all emitted carbon dioxide is balanced by removal or offsetting, resulting in a net-zero carbon footprint.
Blending → Mixing sustainable aviation fuel with conventional jet fuel to meet technical standards and ensure compatibility with current aircraft.
Greenhouse Gases → Gases such as carbon dioxide that trap heat in the atmosphere, driving climate change and targeted for reduction in aviation.
This Article in a Nutshell
Neste has begun supplying FedEx with over three million gallons of sustainable aviation fuel at Los Angeles International Airport. The blend contains at least 30% pure SAF, significantly reducing emissions. This pioneering agreement covers about 20% of FedEx’s jet fuel needs at LAX, setting an industry example for environmental action.
— By VisaVerge.com
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