Microsoft volunteers for fuel premium to move server racks by air

Microsoft will receive green credits for its SAF contributions through a certified registry. 

“Collaboration across our supply chain ecosystem is crucial as we continue to drive toward Microsoft’s sustainability goals. By working together to increase the production and use of SAF, we can help to cost effectively drive down emissions and increase the potential for more use of alternative fuels across the transport ecosystem,” Colin Todd, Microsoft’s general manager of cloud manufacturing operations and fulfillment, said in a news release.

Cargolux operates a fleet of 30 Boeing 747-8 and 747-400 freighter aircraft. It has an order with Boeing for 10 next-generation 777-8 freighters to replace aging 747-400s, with deliveries expected to start sometime late this decade. 

FedEx

Meanwhile, FedEx on Tuesday announced a deal with Neste secure more than 3 million gallons of blended sustainable aviation fuel for delivery at Los Angeles International Airport.

Through the agreement, FedEx has purchased blended fuel from Neste, to include a minimum of 30% of sustainable avation fuel. As used in its blended form, the fuel will account for roughly a fifth of all jet fuel consumed annually by FedEx at LAX and is the largest SAF purchase by a U.S. cargo airline at LAX to-date, according to FedEx. Delivery of the fuel began earlier this month and will continue over the next year.

“Our aviation network represents the largest amount of FedEx fuel use globally and, as a result, is our biggest opportunity to drive down emissions. As we work toward our goal of carbon-neural operations by 2040, we need the SAF market to continue to grow to meet industry demand,” said Karen Blanks Ellis, chief sustainability officer and vice president of environmental affairs at FedEx, in a news release.

Neste SAF is made from 100% renewable waste and residue raw materials, such as used cooking oil and animal fat waste.

While SAF production continues to grow in the U.S. and internationally, SAF accounted for less than 1% of all global jet fuel production in 2024.

Sustainable fuels can reduce 80% of greenhouse gas emissions compared to fossil-based fuel, although some critics say the life cycle emissions of production and transport to airports can cancel out the benefits.

Click here for more FreightWaves/American Shipper stories by Eric Kulisch.

RELATED READING:

UPS to eliminate 20K jobs as Amazon decoupling accelerates

DHL cuts ties with cargo airlines as efficiency initiative ramps up