Red Rock Biofuels LLC, a pioneer in renewable biofuels, announced today that it will produce 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.
“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.”
Red Rock’s first refinery, funded in part by a $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. and 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. “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 customer 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. For more information, please visit www.redrockbio.com.
About Red Rock Biofuels
Red Rock Biofuels LLC will refine waste biomass residues into high value, lower carbon renewable jet, diesel and naphtha fuels. Utilizing forest residues as a feedstock will help improve ecosystem health and reduce the risk of destructive wildfires in our forests, and renewable fuels will help our customers address their price volatility, energy security and climate change challenges. Using a well-proven process technology platform, based on gasification, Fischer-Tropsch conversion and product upgrading, Red Rock Biofuels is the only company able to produce renewable, ASTM-specification jet and diesel fuels at cost parity with conventional fuels. For more information, please visit www.redrockbio.com.