Fort Collins-based Red Rock Biofuels will sell 3 million gallons of jet fuel to FedEx for seven years starting in 2017, reports the Denver Business Journal. But the cool thing about this fuel is that it's made from trees.
The fuel will come from the waste wood of a saw mill, says Red Rock co-founder and president Terry Kulesa, and it's "pretty cheap feedstock," he told the Denver Post.
All this deal-making and planning comes before the company has built its first biorefinery though, planned for Lakeview, Oregon. Kulesa told DBJ that's a good thing:
“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,” Kulesa said. “This is a big deal. We’re trying to finance a project and that’s easier to do when you have off-take locked in."