FedEx Express, a subsidiary of FedEx Corp., has signed a deal for renewable jet fuel with Colorado-based Red Rock Biofuels. According to Red Rock, the company will produce approximately 3 million gallons of the fuel annually for FedEx Express.
The agreement runs through 2024, with first delivery expected in 2017. FedEx joins Southwest Airlines in purchasing Red Rock's total available volume of jet fuel.
Red Rock says its first refinery, funded in part by a $70 million federal grant, is scheduled to break ground this fall in Lakeview, Ore., and will convert approximately 140,000 dry tons of woody biomass into 15 million gallons per year of renewable jet, diesel and naphtha fuels.
“As we look to break ground on our refinery in the coming months, we're thrilled to have signed a contract with FedEx as they look to diversify their fuel supply and reduce emissions throughout their aviation unit,” comments Terry Kulesa, co-founder and CEO of Red Rock. “With our total jet fuel capacity now sold to FedEx and Southwest Airlines, we are building a suite of powerful, global customers that continue to commit to the future of alternative fuels in a market where oil prices are low, providing true validation of our business model and mission.”