US renewable fuel company, KiOR Inc, has confirmed today that it has been awarded a contract to supply fuel to global delivery company, FedEX Corporate Services.

KiOR conducts research and development in the renewable fuel sector, and has invented a technology for converting biomass into fuel blendstocks, which can be processed using traditional refining equipment and distributed and consumed through current channels and used in existing engines and equipment without modification.

FedEX is a global supplier of courier, shipping and delivery services and is committed to reducing its environmental impact by incorporating responsible environmental practices into daily operations.

The relationship will see KiOR provide FedEX with renewable diesel blendstocks from its Mississippi manufacturing operation, although it is unclear exactly when supply will commence, as the site is not expected to begin production until late 2012. KiOR has received considerable support from the US government, including loan guarantees and funding from the Department of Energy and the State of Mississippi.

KiOR CEO and president, Fred Cannon, commented: "We are excited to be working with a premier transportation company like FedEx. This agreement with the services company of direct end users is another step toward delivering our fuel blendstocks to the market."

Author: Paul Chapman, Analyst