Red Rock Biofuels to supply FedEx Express with renewable jet fuel
Red Rock Biofuels LLC, a pioneer in renewable biofuels based in Fort Collins, Colo., U.S.A., said it will supply approximately three million gallons of low-carbon, renewable jet fuel per year for FedEx Express, a subsidiary of FedEx Corp. (NYSE:FDX). 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’s first refinery, funded in part by a USD 70 million Title III DPA grant from the U.S. Departments of Agriculture, Energy and Navy, is scheduled to break ground this fall in Lakeview, Ore., U.S.A. and will convert approximately 140,000 dry tons of woody biomass into 15 million gallons per year of renewable jet, diesel and naphtha fuels. Using a well-proven process technology platform, based on gasification, Fischer-Tropsch conversion and product upgrading, Red Rock Biofuels says it is the only company so far that can produce renewable, ASTM-specification jet and diesel fuels at cost parity with conventional 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,” said 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.”