Ferrari has announced that it will opt for biofuels for its 2026 power unit, a decision that could put them at a disadvantage against Mercedes and Honda, who are betting on more efficient synthetic e-fuels. Every strategic decision could prove decisive for the next era of the category.
During the Monaco Grand Prix, Ferrari and Shell commemorated their 75 years of collaboration with the announcement that their 2026 hybrid engine will run on an advanced biofuel, rather than the e-fuel that most manufacturers will adopt. This choice has surprised many in the paddock, especially since technical analyses clearly favor e-fuels due to their greater efficiency and consistency in combustion.
Ferrari chooses biofuel
The new fuel being developed by Shell, called V-Power Advanced Sustainable Race Fuel, will be sourced primarily from urban waste and non-food biomass. This formula meets the sustainability requirements of the FIA, but its chemical composition is more heterogeneous than that of e-fuels. This could mean less stable combustion and poorer thermal efficiency for the engine, which could result in a slight decrease in power.
While Ferrari is pursuing this path, its main rivals seem to be taking a different direction. Mercedes and Honda, together with Audi and Red Bull Powertrains, are working on synthetic fuels—known as e-fuels—that promise better adaptability to future hybrid units. These fuels, produced from green hydrogen and captured CO2, are chemically pure and more energy efficient, which translates into higher performance and lower emissions throughout their entire cycle.
Ferrari’s decision
Ferrari’s move has generated a wave of uncertainty. Renowned F1 analyst Mark Hughes had already predicted that one of the five engine manufacturers would be distancing itself from the rest by opting for a solution that “is reportedly uncompetitive.” It has now been confirmed that this manufacturer is Ferrari.
This choice has led many to wonder if Maranello knows something the rest of us don’t. Is there an as-yet-undisclosed advantage to the chosen biofuel? Or is it simply a risky gamble with sustainability as the priority, even at the expense of performance?
Shell defends its decision. David Bunch, executive vice president of the group, said that this fuel represents a firm step towards decarbonization and that they have full confidence in its performance. However, the pressure will be on Ferrari to turn this vision into concrete results on the track.
Mercedes, Honda, and e-fuel
Once the new engine regulations are implemented in 2026, every technical aspect could mean victory on the grid or a setback. Mercedes and Honda have expressed a clear preference for e-fuels because of the benefits they have brought in terms of power, efficiency, emissions, and more.
These brands, along with others such as Audi, are building their mid-term powertrains with e-fuel as the main element and are backed by data to support this. Its chemical purity allows for cleaner and more powerful combustion, blending better with the circuits and thus moving closer to the FIA’s goal of net zero emissions more quickly.
Ferrari and Shell, meanwhile, have opted for a different path. The big question is whether they will be able to compensate for the potential technical limitations of biofuel with innovative developments that will help them stay in the fight for the title. For now, Mercedes and Honda can rest easy: the technological balance seems to be in their favor.