Sustainable Aviation
FedEx and Neste Launch Major SAF Initiative at LAX to Cut Emissions
FedEx partners with Neste to deploy 3M gallons of sustainable aviation fuel at LAX, reducing CO2 emissions by 25K metric tons annually. A key step toward FedEx’s 2040 carbon-neutral target.
FedEx and Neste Launch Major Sustainable Aviation Fuel Initiative at LAX
The aviation industry is under increasing scrutiny as global climate goals tighten and public awareness of carbon emissions grows. One of the most promising solutions to reduce aviation-related greenhouse gas emissions is the adoption of Sustainable Aviation Fuel (SAF). SAF offers a renewable alternative to traditional fossil-based jet fuel, capable of reducing emissions by up to 80% over its lifecycle. As such, it has become a focal point in the decarbonization strategies of airlines and cargo carriers alike.
In a landmark move, FedEx, the world’s largest express cargo airline, has partnered with Neste, a leading producer of renewable fuels, to begin supplying SAF at Los Angeles International Airport (LAX). This initiative, announced on May 20, 2025, marks FedEx’s first major deployment of SAF in the United States and represents the largest SAF purchase by a U.S. cargo airline at LAX to date. The agreement not only reflects FedEx’s commitment to sustainability but also highlights the growing role of SAF in transforming the aviation sector.
Strategic Partnership: Neste and FedEx Drive Aviation Sustainability
Details of the Agreement
Under the new agreement, Neste will supply FedEx with 8,800 metric tons, equivalent to over three million gallons, of blended Neste MY Sustainable Aviation Fuel™ over the course of one year. The blend includes a minimum of 30% neat SAF, which is derived entirely from renewable waste and residue materials such as used cooking oil and animal fat waste. This volume is projected to account for approximately 20% of the total jet fuel consumed by FedEx at LAX annually.
Deliveries of the SAF began in May 2025 and are expected to continue for a full year. The environmental impact of this supply is significant: it is estimated to reduce CO2 emissions by approximately 25,000 metric tons annually. That’s roughly equivalent to removing 5,400 passenger vehicles from the road for one year, according to industry estimates.
FedEx’s Chief Sustainability Officer, Karen Blanks Ellis, emphasized the importance of this initiative, stating, “Our aviation network represents the largest amount of FedEx fuel use globally and, as a result, is our biggest opportunity to drive down emissions.” The company aims to achieve carbon-neutral operations by 2040, and SAF is a cornerstone of that strategy.
Neste’s Role and Production Capabilities
Neste, headquartered in Finland, is currently the world’s largest producer of SAF. The company refines renewable raw materials into high-quality fuels at facilities located across three continents. As of 2025, Neste’s global SAF production capacity stands at 1.5 million tons (approximately 515 million gallons) per year, with plans to increase this to 6.8 million tons by 2027.
The company’s SAF is certified for commercial use and can be blended up to 50% with conventional jet fuel. It works seamlessly with existing aircraft engines and fueling infrastructure, which makes it an attractive option for airlines and cargo operators looking to reduce emissions without overhauling their fleets.
“FedEx is demonstrating how the air cargo industry can leverage available lower-emission solutions like SAF to reduce its environmental impact,” said Carl Nyberg, Senior Vice President, Commercial, Renewable Products at Neste. This partnership is expected to pave the way for more widespread adoption of SAF in the U.S. aviation sector.
Industry Context and Market Dynamics
Regulatory and Market Support
The aviation industry currently contributes approximately 2–3% of global CO2 emissions. In response, international bodies such as the International Air Transport Association (IATA) and the International Civil Aviation Organization (ICAO) have launched initiatives like CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation) to promote carbon-neutral growth and ultimately achieve net-zero emissions by 2050.
In the U.S., policy support has played a critical role in fostering SAF adoption. California, where LAX is located, offers incentives and blending mandates that make the state a favorable environment for sustainable fuel deployment. Additionally, the federal government has introduced a SAF tax credit of up to $1.75 per gallon as part of broader efforts to decarbonize transportation.
Despite these incentives, SAF remains more expensive than conventional jet fuel, with prices ranging from $2.50 to $3.50 per gallon compared to around $2.00 for fossil-based fuel. These price dynamics underscore the need for continued investment in technology and infrastructure to scale production and bring costs down.
Implications for the Cargo and Logistics Sector
FedEx’s deployment of SAF at LAX is not just a milestone for the company but also a signal to the broader logistics and air cargo industry. As one of the most emission-intensive sectors, air freight faces mounting pressure from investors, regulators, and customers to adopt cleaner energy sources.
By embracing SAF, FedEx positions itself as a leader in sustainable logistics and sets a precedent for other cargo carriers. This move may catalyze similar initiatives across the industry, especially as more companies commit to decarbonization targets and environmental, social, and governance (ESG) benchmarks.
Moreover, the LAX deployment could reinforce Los Angeles’ role as a hub for sustainable aviation, potentially attracting further investment and innovation in the area. As SAF infrastructure develops, more airports and carriers may follow suit, accelerating the transition to low-emission air transport.
Challenges and the Road Ahead
While the FedEx-Neste partnership is a significant step forward, scaling SAF adoption faces several hurdles. Chief among these are production limitations, high costs, and the need for broader industry collaboration. According to sustainability experts, achieving widespread SAF use will require coordinated efforts among fuel producers, airlines, regulators, and investors.
Infrastructure development is also crucial. Airports must be equipped to store and distribute SAF, and supply chains need to be optimized to ensure reliable delivery. Additionally, public and private funding will be necessary to support research and development into next-generation biofuels and synthetic alternatives.
Despite these challenges, the momentum is building. With major players like FedEx and Neste leading the charge, and supportive policies gaining traction, the future of SAF looks increasingly viable. Continued innovation and investment will be key to unlocking its full potential.
Conclusion: A Step Toward Greener Skies
The collaboration between FedEx and Neste at LAX marks a pivotal moment in the journey toward sustainable aviation. By committing to SAF, FedEx not only reduces its carbon footprint but also sets a benchmark for the logistics and air cargo industry. Neste’s role as a global SAF supplier further underscores the importance of scalable, renewable fuel solutions in achieving climate goals.
As the aviation industry continues to evolve, partnerships like this one demonstrate that sustainable transformation is not only possible but already underway. With the right mix of policy support, technological innovation, and corporate commitment, SAF could become a cornerstone of a cleaner, more resilient air transport system.
FAQ
What is Sustainable Aviation Fuel (SAF)?
SAF is a renewable alternative to conventional jet fuel, made from waste and residue materials. It can reduce greenhouse gas emissions by up to 80% over its lifecycle.
Why is FedEx using SAF at LAX?
FedEx is using SAF to reduce emissions from its air operations as part of its goal to achieve carbon-neutral operations by 2040. LAX was chosen due to its infrastructure and policy support for sustainable fuels.
How much SAF is FedEx using?
FedEx is purchasing 8,800 metric tons (about 3 million gallons) of blended SAF from Neste, accounting for roughly 20% of its annual jet fuel use at LAX.
Sources:
Neste Corporation,
FedEx Sustainability Reports,
IATA Climate Action,
U.S. Energy Information Administration,
CORSIA
Photo Credit: FedEx
Sustainable Aviation
KBR PureSAF Technology Selected for Kazakhstan First SAF Plant
KBR licenses PureSAF technology for Kazakhstan’s first SAF facility, using an alcohol-to-jet process with domestic feedstocks.
Global engineering firm KBR announced on August 24, 2026, that it secured a contracts to license its proprietary PureSAF technology and provide engineering design for Kazakhstan’s inaugural Sustainable Aviation Fuel (SAF) production facility. The project, developed in partnership with KazMunayGas-Aero LLP (KMG-Aero) and KazFoodProducts (KFP), will utilize domestic agricultural feedstocks to produce low-carbon aviation fuel via an alcohol-to-jet (AtJ) process.
In a press release detailing the contract award, KBR confirmed the agreement supports Kazakhstan’s strategic objective to establish itself as an international aviation hub while advancing aviation decarbonization. The planned facility will leverage technology developed in collaboration with Swedish Biofuels AB to convert ethanol into drop-in aviation fuel.
Technology and Project Scope
The facility will utilize KBR’s PureSAF technology, an alcohol-to-jet pathway designed to process agricultural feedstocks into sustainable aviation fuel. The foundational trilateral agreement covering the Process Design Package (PDP) and technology licensing was signed by KBR, KMG-Aero, and KFP in Astana on July 23, 2026. KBR, which employs approximately 37,000 people and operates in 28 countries, will provide the engineering framework required to scale the AtJ process for commercial output.
KBR Sustainable Technology Solutions President Jay Ibrahim stated the company is honored to support the national commitment to reduce greenhouse gas emissions.
“KBR’s PureSAF is a feed-flexible, bankable technology that is designed to deliver high SAF yields and supports the project across the full lifecycle. We look forward to closely collaborating and supporting the successful execution of this landmark SAF project,” Ibrahim said.
Kazakhstan’s Aviation Decarbonization Strategy
The KBR contract follows a series of government initiatives aimed at building a domestic SAF supply chain. On August 4, 2026, Kazakh Prime Minister Olzhas Bektenov and Dr. Peter Lee of Hong Kong-based Full Vision Capital signed a memorandum of understanding to explore creating a green aviation fuel ecosystem in the city of Alatau. This proposed ecosystem would cover the full production cycle, from cultivating agricultural feedstock to manufacturing the finished product.
These infrastructure investments align with recommendations from global aviation regulators and industry groups. In April 2026, the International Air Transport Association (IATA) emphasized that continued investment in SAF, alongside new airport infrastructure, is critical for Kazakhstan to capitalize on global passenger and cargo traffic and strengthen its domestic aviation sector.
AirPro News analysis
The KBR contract award represents a concrete technical step in Kazakhstan’s ambition to localize SAF production, but several commercial variables remain undefined. The August 24 announcement did not disclose the financial value of the engineering contract, the projected production capacity of the facility, or a target completion date. We note that while the alcohol-to-jet pathway is a proven method for SAF production, scaling agricultural feedstock supply-chain domestically will be critical to the plant’s long-term viability. The parallel involvement of Full Vision Capital suggests the government is actively working to finance and structure this agricultural supply chain in the Alatau region to ensure the KBR-designed facility has the necessary inputs to operate at scale.
Sources: KBR
Photo Credit: Montage
Sustainable Aviation
Syzygy Plasmonics and IFC Partner on SAF Projects in Latin America
Syzygy Plasmonics and IFC sign a framework to develop SAF projects in Latin America, starting with a 350,000-gallon facility in Uruguay.
Syzygy Plasmonics and the International Finance Corporation (IFC) announced a framework agreement on August 18, 2026, to develop a pipeline of SAF projects across Latin America, beginning with a commercial-scale facility in Uruguay.
The partnership, detailed in a press release issued by Syzygy Plasmonics, pairs the company’s proprietary light-driven reactor technology with the IFC’s technical and commercial advisory services. The initiative targets emerging markets by utilizing regional renewable energy and biogas feedstocks to produce lower-carbon alternatives to conventional jet fuel.
The NovaSAF-1 project in Uruguay
The first project under this framework is NovaSAF-1, located in Durazno, Uruguay. The facility is projected to produce an estimated 350,000 gallons of SAF annually. Syzygy Plasmonics has set a target year of 2028 for the commencement of commercial-scale operations and initial fuel deliveries from the site.
NovaSAF-1 will utilize biogas sourced from the nearby Estancias Del Lago powdered milk plant. This biogas will be combined with Uruguayan renewable electricity to produce synthetic paraffinic kerosene. The production process integrates Syzygy’s light-driven technology with Fischer-Tropsch technology licensed from Velocys to maximize fuel output. According to Syzygy Plasmonics, this process yields an estimated reduction in lifecycle greenhouse gas emissions of up to 90 percent compared with conventional jet fuel.
Commercial backing and offtake agreements
The IFC framework agreement follows established commercial commitments for the NovaSAF-1 facility. On January 20, 2026, global commodities group Trafigura signed a binding six-year offtake agreement to purchase the entire production volume from the Uruguayan plant. The agreement also includes an option for Trafigura to purchase additional volumes from future Syzygy projects.
Syzygy Plasmonics CEO Trevor Best described the commercial arrangements as a critical step toward commercial-scale impact and disrupting the SAF market. The IFC, a member of the World Bank Group, will provide advisory support to help scale these operations across the region.
“The transition to lower-carbon aviation will depend on technologies that are not only innovative, but commercially viable and scalable,” said Raphaël Eskinazi, IFC Regional Investment Manager for Manufacturing and Forests in Latin America and the Caribbean. “IFC’s role is to help bridge that transition: supporting pioneering projects that can mobilize private capital, demonstrate new business models and create pathways for broader market adoption across emerging economies.”
AirPro News analysis
We view the alignment of IFC advisory services, Trafigura’s guaranteed offtake, and Velocys’ established Fischer-Tropsch technology as a significant de-risking mechanism for Syzygy Plasmonics. Scaling novel SAF production methods, particularly those categorized as Renewable Fuels of Non-Biological Origin (RFNBO), typically faces steep financing hurdles. By securing a guaranteed buyer for 100 percent of the initial plant’s output before finalizing the IFC framework, Syzygy has demonstrated a clear path to revenue.
Latin America presents a highly favorable environment for RFNBO production. The region offers abundant agricultural waste for biogas and a growing grid of renewable electricity. If NovaSAF-1 meets its 2028 production targets, the framework agreement with the IFC positions Syzygy to replicate this model rapidly across other agricultural and renewable energy hubs in the Southern Hemisphere.
Photo Credit: Syzygy Plasmonics
Sustainable Aviation
UK, Google and NATS Launch Contrail Avoidance Trial
Operation Blue Skies is a £5M, 30-month trial targeting contrail reduction across Shanwick oceanic airspace.
A consortium led by the UK government, Google, and air navigation service provider NATS has launched a £5 million, 30-month trial to mitigate aviation-induced warming contrails across the entire Shanwick oceanic airspace.
Announced on August 18, 2026, in a Google press release, “Operation Blue Skies” marks the commercial aviation industry’s first attempt to implement contrail avoidance at the scale of an entire flight corridor rather than on a per-airline basis. The initiative targets a phenomenon responsible for approximately one-third of the sector’s total climate impact.
Scaling AI for airspace-wide mitigation
The program will conduct two operational trials during the winters of 2026-2027 and 2027-2028. Testing will take place exclusively within the NATS-controlled Shanwick oceanic airspace, which encompasses the eastern half of the North Atlantic corridor. According to Google, this specific airspace accounts for roughly 5 percent of global contrail warming.
Google UK is participating on a pro-bono basis, providing a £1.4 million in-kind contribution that includes artificial intelligence research, engineering resources, and computing infrastructure. Google Technical Program Manager Paul Hodgson and Senior Program Manager Chaim Langermann described the initiative as “the world’s first state-backed trial to avoid contrails at the scale of an entire oceanic airspace.”
The broader consortium includes the UK Department for Transport (DfT), the Met Office, Contrails.org, Imperial College London, the University of Cambridge, and the Aerospace Technology Institute (ATI).
“We’re partnering with Google to back British experts and innovators to find practical ways to make flying cleaner. This is a world-first, and it is British ingenuity leading the way. By testing small tweaks to flight paths over the Atlantic, we can cut the vapour trails left behind by planes,” said UK Government Minister for Aviation, Maritime and Freight Keir Mather, according to reporting by Smart Cities World.
Transitioning from individual flights to systemic integration
Operation Blue Skies builds upon earlier research validating the use of AI-powered forecasts to predict and avoid contrail-forming regions. Google Research previously partnered with American Airlines, EUROCONTROL’s Maastricht Upper Area Control Centre (MUAC), and FlightKeys to demonstrate that contrail avoidance is scientifically and operationally viable for individual flights.
The new trial shifts the operational coordination to the air navigation service provider. By integrating predictive models directly into the airspace management level, NATS and its partners aim to evaluate how contrail mitigation impacts overall airspace capacity, controller workload, and flight efficiency across a high-density oceanic routing system.
AirPro News analysis
We view the shift from individual airline dispatch trials to an air navigation service provider-led model as a critical maturation in aviation sustainability efforts. If NATS can successfully integrate AI-driven contrail forecasting into the Shanwick oceanic clearance process without degrading airspace capacity or significantly increasing fuel burn, it could establish a blueprint for global air traffic management. The winter testing windows are particularly relevant, as atmospheric conditions during these months are highly conducive to persistent contrail formation over the North Atlantic. The results of this 30-month program will likely dictate whether regulators and service providers mandate contrail avoidance routing in the next decade.
Sources: Google Blog
Photo Credit: Google
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