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FedEx Announces Switch From Diesel to HVO To Reduce Linehaul Emissions in UK

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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.

FedEx Express ha annunciato un cambiamento significativo nelle sue operazioni nel Regno Unito, passando all'olio vegetale idrogenato (HVO) come biocarburante per i suoi camion di linea in tre sedi principali. Oltre 170 combinazioni di trattori e rimorchi utilizzeranno ora l'HVO nei luoghi di Parkhouse, Marston Gate e Atherstone. Questo cambiamento è previsto portare risparmi certificati delle emissioni di carbonio del ciclo di vita di almeno l'80% rispetto al diesel.

Attraverso un accordo di due anni con Crown Oil, FedEx ha garantito l'acquisto di almeno quattro milioni di litri di HVO all'anno. Questa decisione segue il successo delle prove nel Regno Unito e nei Paesi Bassi, che hanno evidenziato l'HVO come un'alternativa preferita al diesel nella rete stradale europea di FedEx. La transizione consentirà alla flotta di FedEx di percorrere circa 36.000 miglia ogni settimana con carburante alternativo, rappresentando un passo significativo verso l'obiettivo dell'azienda di raggiungere operazioni carbon neutral entro il 2040.

FedEx Express ha anunciado un cambio significativo en sus operaciones en el Reino Unido, pasando a utilizar aceite vegetal hidrogenado (HVO) como biocombustible para sus camiones de línea en tres sitios principales. Más de 170 combinaciones de tractores y remolques utilizarán ahora HVO en las ubicaciones de Parkhouse, Marston Gate y Atherstone. Se espera que este cambio proporcione ahorros certificados de emisiones de carbono de ciclo de vida de al menos el 80% en comparación con el diésel.

A través de un acuerdo de dos años con Crown Oil, FedEx ha asegurado la compra de al menos cuatro millones de litros de HVO anualmente. Esta decisión sigue a ensayos exitosos en el Reino Unido y los Países Bajos, que destacaron el HVO como una alternativa preferida al diésel en la red de carreteras europea de FedEx. La transición permitirá a la flota de FedEx recorrer aproximadamente 36,000 millas cada semana con combustible alternativo, marcando un paso significativo hacia el objetivo de la compañía de alcanzar operaciones carbon-neutral para 2040.

FedEx 익스프레스는 영국의 운영 방식을 크게 전환하여 세 군데 주요 장소에 있는 긴 트럭에 수소처리 식물성 기름(HVO) 바이오 연료를 사용하기로 했습니다. 170대 이상의 트랙터-트레일러 조합이 Parkhouse, Marston Gate, Atherstone에 있는 장소에서 HVO를 사용할 것입니다. 이 변화는 디젤에 비해 최소 80%의 인증된 생애주기 탄소 배출량 절약 효과를 가져올 것으로 예상됩니다.

Crown Oil와의 2년 계약을 통해 FedEx는 연간 최소 400만 리터의 HVO를 구매하기로 했습니다. 이 결정은 영국과 네덜란드에서의 성공적인 시험을 따르며, HVO가 FedEx의 유럽 도로망에서 디젤에 대한 선호 대안으로 강조되었습니다. 이 전환은 FedEx의 차량이 매주 약 36,000마일을 대체 연료로 주행할 수 있게 할 것이며, 이는 2040년까지 탄소 중립 운영을 달성하겠다는 회사의 목표를 향한 중요한 진전을 의미합니다.

FedEx Express a annoncé un changement significatif dans ses opérations au Royaume-Uni, en passant à l'huile végétale hydrogénée (HVO) comme biocarburant pour ses camions de longue distance sur trois sites majeurs. Plus de 170 ensembles tracteur-remorque utiliseront désormais l'HVO aux emplacements de Parkhouse, Marston Gate et Atherstone. Ce changement devrait permettre des économies certifiées d'émissions de carbone du cycle de vie d'au moins 80% par rapport au diesel.

Grâce à un accord de deux ans avec Crown Oil, FedEx a sécurisé l'achat de minimum quatre millions de litres d'HVO par an. Cette décision fait suite à des essais réussis au Royaume-Uni et aux Pays-Bas, qui ont mis en évidence l'HVO comme alternative privilégiée au diesel dans le réseau routier européen de FedEx. La transition permettra à la flotte de FedEx de parcourir environ 36 000 miles chaque semaine avec un carburant alternatif, marquant un pas significatif vers l'objectif de l'entreprise d'atteindre des opérations carbon neutral d'ici 2040.

FedEx Express hat einen bedeutenden Wandel in seinen UK-Operationen angekündigt und wechselt zu hydrierten Pflanzenöl (HVO) Biokraftstoff für seine Langstrecken-Lkw an drei großen Standorten. Über 170 Traktor-Anhänger-Kombinationen werden nun an Standorten in Parkhouse, Marston Gate und Atherstone HVO verwenden. Dieser Wechsel wird voraussichtlich zertifizierte Lebenszykluseinsparungen der Kohlenstoffemissionen von mindestens 80% im Vergleich zu Diesel liefern.

Durch eine zweijährige Vereinbarung mit Crown Oil hat FedEx den Kauf von mindestens vier Millionen Litern HVO jährlich gesichert. Diese Entscheidung folgt auf erfolgreiche Tests im Vereinigten Königreich und den Niederlanden, die HVO als bevorzugte Alternative zu Diesel im europäischen Straßennetz von FedEx herausstellten. Der Wechsel wird es der FedEx-Flotte ermöglichen, ungefähr 36.000 Meilen pro Woche mit alternativen Kraftstoffen zu fahren, was einen bedeutenden Schritt in Richtung des Ziels des Unternehmens darstellt, bis 2040 kohlenstoffneutrale Betriebsabläufe zu erreichen.

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.

Insights

FedEx's transition to HVO fuel in the UK is a significant step towards reducing emissions in their linehaul operations. The use of HVO in over 170 trucks across three sites demonstrates a substantial commitment to sustainability. With an 80% reduction in lifecycle carbon emissions compared to diesel, this initiative aligns well with FedEx's goal of carbon-neutral operations by 2040.

The two-year agreement for 4 million liters of HVO annually shows a long-term investment in this technology. This move not only reduces emissions but also serves as a proof of concept for potential expansion to other regions. The ability to use HVO as a drop-in replacement for diesel in both trucks and ground service equipment highlights its versatility and potential for wider adoption in the logistics industry.

While this is a positive step, it's important to note that biofuels like HVO are not a perfect solution. Investors should consider the scalability of HVO production and its long-term sustainability, as well as FedEx's plans for transitioning to fully electric or hydrogen-powered vehicles in the future.

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 80% compared to diesel and offers one way of reducing the emissions of operating a network of heavy goods vehicles. FedEx Express began using 100% HVO fuel as a direct replacement, or ‘drop-in' alternative, to diesel, in UK operations in October 2023. This earlier trial, along with a similar pilot in the Netherlands, allowed FedEx to evaluate the practicalities of refuelling with alternative fuels and highlighted HVO as a preferred route to help FedEx transition from diesel to biofuels in its European road network.

"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

FAQ

What is FedEx's (FDX) new initiative to reduce emissions in the UK?

FedEx is switching from diesel to hydrotreated vegetable oil (HVO) biofuel for its linehaul trucks at three UK sites, covering over 170 tractor-trailer combinations.

How much carbon emissions reduction does FedEx (FDX) expect from using HVO?

FedEx expects to achieve certified lifecycle carbon emissions savings of at least 80% compared to diesel by using HVO biofuel.

How many litres of HVO has FedEx (FDX) secured annually for its UK operations?

FedEx has secured the purchase of at least four million litres of HVO annually through a two-year agreement with Crown Oil.

Which FedEx (FDX) locations in the UK are implementing the HVO biofuel transition?

The HVO biofuel transition is being implemented at FedEx locations in Parkhouse (80 tractors), Marston Gate (54 tractors), and Atherstone (38 tractors).

What is FedEx's (FDX) long-term environmental goal mentioned in the announcement?

FedEx's long-term goal is to achieve carbon-neutral operations by 2040, and the transition to HVO biofuel is a step towards this objective.

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