FedEx Announces Switch From Diesel to HVO To Reduce Linehaul Emissions in UK
Rhea-AI Summary
FedEx Express has announced a significant shift in its UK operations, transitioning to hydrotreated vegetable oil (HVO) biofuel for its linehaul trucks at three major sites. Over 170 tractor-trailer combinations will now use HVO across locations in Parkhouse, Marston Gate, and Atherstone. This change is expected to deliver certified lifecycle carbon emissions savings of at least 80% compared to diesel.
Through a two-year agreement with Crown Oil, FedEx has secured the purchase of at least four million litres of HVO annually. This decision follows successful trials in the UK and Netherlands, which highlighted HVO as a preferred alternative to diesel in FedEx's European road network. The transition will enable FedEx's fleet to drive approximately 36,000 miles each week on alternative fuel, marking a significant step towards the company's goal of achieving carbon-neutral operations by 2040.
Positive
- Transition to HVO biofuel expected to reduce carbon emissions by at least 80% compared to diesel
- Secured purchase of 4 million litres of HVO annually through a two-year agreement
- Implementation across 170+ trucks in three major UK sites
- Fleet to drive approximately 36,000 miles weekly on alternative fuel
- HVO can also be used in select ground service equipment, offering an alternative where electrification is not yet practical
Negative
- None.
News Market Reaction 1 Alert
On the day this news was published, FDX declined 0.14%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
LONDON, UK / ACCESSWIRE / October 10, 2024 / Federal Express Corporation, the world's largest express transportation company, announces its transition to using biofuels in linehaul trucks at three UK sites as of this month.
More than 170 trucks - all tractor-trailer combinations - will now refuel with hydrotreated vegetable oil (HVO) across FedEx locations in Parkhouse (80 tractors), Marston Gate (54 tractors), and Atherstone (38 tractors). Thanks to a two-year agreement with supplier, Crown Oil, FedEx has secured the purchase of at least four million litres of the fuel annually.
The change to HVO will deliver certified lifecycle carbon emissions savings of at least
"FedEx operates an expansive road network across the region. We're excited to share that the UK is the first country where we're able to scale the use of HVO in our operations, in what we hope will be a permanent operational change. We've been trialling our use of this fuel for eight months already and with this purchase agreement we're increasing our consumption sufficiently for our fleet to drive approximately 36,000 miles each week on alternative fuel. This decision is another step towards our long-term goal of achieving carbon-neutral operations by 2040,"said James Richards, Senior Manager Road Network Operations UK, FedEx.
As well as helping to reduce the emissions of linehaul trucks, HVO can also be used in place of diesel in select pieces of ground service equipment. Under this agreement, 16 tugs - used at the same three sites to reposition accompanying trailers - will begin routine use of HVO as a drop-in fuel. While some pieces of ground service equipment are already commonly procured as battery electric, HVO offers favourable alternative to diesel where electrification of certain ground service equipment may not yet be practical.
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SOURCE: FedEx Corporation
View the original press release on accesswire.com