While many automotive manufacturers around the world are racing toward an all-electric future, Japan’s biggest carmakers are taking a different approach. Toyota, Mazda, Subaru, and other Japanese brands are investing heavily in synthetic fuels as a way to extend the life of the traditional internal combustion engine.
Some may be quick to write the obituary for gasoline engines, but for car enthusiasts and manufacturers in Japan, these powerplants still have plenty of life left in them. The path forward just might involve a different kind of fuel.
The Japanese alternative to full electrification
Unlike their European counterparts who have gone all-in on battery electric vehicles, Japanese automakers are pursuing multiple paths to reduce carbon emissions. They’re not abandoning electric vehicles by any means, but they’re also exploring other options that might make more sense for different markets and driving needs.
Last year, three major Japanese brands formed an alliance to develop next-generation gasoline engines. Now we’re seeing the fruits of that collaboration, with plans to showcase vehicles running on synthetic fuel blends at the upcoming Osaka Expo 2025.
This six-month event in Japan will highlight cutting-edge technology across multiple industries, with over 160 participants from around the world, including the United States and China. Visitors will get a glimpse of advancements in space technology, medicine, robotics, flying vehicles, and other next-gen products.
How Japanese brands plan to extend gasoline engine lifespans
The strategy Japanese automakers have settled on involves synthetic fuels supplied by ENEOS Corporation. This company completed Japan’s first demonstration factory capable of producing synthetic gasoline in September 2024. The facility can produce about 42 gallons of fuel daily – a clean energy source manufactured from hydrogen and carbon dioxide.
The alliance between Toyota, Mazda, and Subaru aims to develop brand-specific “distinctive engines” capable of running on carbon-neutral fuels like liquid hydrogen, biofuel, and synthetic fuel.
Toyota is currently working on three different four-cylinder engines, while Mazda is developing rotary engines and a new Skyactiv-Z four-cylinder. Not to be outdone, Subaru is refining its signature boxer engine design, which Toyota also seems to find appealing for certain applications.
(I’ve always loved Subaru’s boxer engine design – there’s something about that horizontal layout and unique sound that just feels special compared to conventional inline engines.)
What exactly are synthetic fuels?
Synthetic fuels, sometimes called e-fuels, represent an alternative energy source that could complement electric vehicles in the future mobility landscape. These fuels offer hope that combustion vehicles might continue to exist beyond 2035, when many regions plan to halt sales of new gasoline-powered cars.
Remember when the European Union included synthetic fuels as a viable alternative after 2035? That was the condition Germany needed to vote in favor of the combustion engine ban.
German automakers have been working on this solution for some time, especially Porsche, which operates a plant in Chile dedicated exclusively to producing synthetic gasoline.
What makes these fuels special? They’re considered carbon-neutral because they’re created using carbon dioxide captured directly from the atmosphere, water, and energy obtained from renewable sources like wind and solar power.
When the fuel is burned in an engine, it generates the same amount of CO2 that was captured during its production – creating a neutral carbon cycle that doesn’t add new greenhouse gases to the atmosphere.
Have you ever wondered about the difference between synthetic fuels and biofuels? The distinction is important. Synthetic fuels shouldn’t be confused with biofuels, which are derived from raw materials that could otherwise be used as food sources. Instead, synthetic fuels originate from essential elements like oxygen, hydrogen, and carbon dioxide.
A multi-pronged approach to decarbonization
Japanese automakers aren’t putting all their eggs in one basket. They recognize that different solutions may work better for different markets and use cases. By developing engines that can run on various carbon-neutral fuels, they’re creating flexibility for the future.
For drivers who love the sound and feel of a combustion engine but want to reduce their environmental impact, synthetic fuels might offer the best of both worlds. You get the driving experience you love without the carbon footprint typically associated with gasoline.
The automotive landscape is transforming rapidly. While some regions push ahead with blanket bans on combustion engines, the Japanese strategy suggests there might be room for more than one solution in our automotive future.
What do you think about synthetic fuels? Are they a legitimate path forward or just a way to delay the inevitable shift to electric vehicles? The answer might be somewhere in between, with different technologies serving different needs as we transition to a lower-carbon transportation system.
(As someone who appreciates both the instant torque of electric motors and the mechanical symphony of a well-tuned gasoline engine, I’m glad to see companies exploring multiple paths forward rather than declaring one technology the only winner.)
