|September 30, 2015|
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Red Rock Biofuels to provide biobased jet fuel to FedEx Express
(Editor's note: Based on a release by Red Rock Biofuels LLC of July 21, 2015, plus information from the company's website.)
Red Rock Biofuels LLC, a Fort Collins, Colorado-based pioneer in renewable biofuels, has announced that it will produce approximately 3 million gallons of low-carbon, renewable jet fuel per year for FedEx Express, a subsidiary of FedEx Corp. The agreement runs through 2024, with first delivery expected in 2017. FedEx joins Southwest Airlines, which signed a similar agreement in September 2014.
The twin deals mean Red Rock has locked up supply agreements that account for all of the jet fuel the company expects to make at the $200 million biorefinery it is planning to build in Lakeview, Oregon, in the fall. The new biorefinery, funded in part by a $70 million Title III DPA grant from the U.S. Departments of Agriculture, Energy and Navy, will convert approximately 140,000 dry tons of woody biomass into 15 million gallons per year of renewable jet, diesel and naphtha fuels. In addition to reducing lifecycle carbon emissions, Red Rock’s production process will reduce the risk of devastating forest fires in the western United States by decreasing the amount of waste woody biomass in surrounding forests.
“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. “FedEx will take half, and Southwest will take the other half—all of the jet fuel that we’ll make in a year is now sold and spoken for. This is a big deal.
“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.”
This announcement comes on the heels of Red Rock’s strategic partnership with Flagship Ventures, a leading venture capital and venture creation firm focused on innovations in healthcare and sustainability, for financial and strategic expertise on securing additional partnerships, funding and customers.
ABOUT RED ROCK BIOFUELS LLC
Red Rock Biofuels LLC is developing refineries in the U.S. to convert woody biomass to renewable drop-in jet, diesel and naphtha fuels. Each refinery will utilize 175,000 dry tons of woody biomass feedstock to produce 16 million gallons per year of finished products.
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