While many predict the demise of internal combustion engines, Japanese automakers have joined forces to ensure these powerplants remain relevant in our future mobility landscape. Toyota, Mazda, Subaru, Suzuki, and Daihatsu are actively developing solutions that could extend the life of gasoline engines through synthetic fuel technology.
This approach marks a stark contrast to the strategy adopted in many Western markets. As Europe goes all-in on electric vehicles, Japan is pursuing a multi-pathway approach that includes electrification while also investing heavily in alternative fuel sources for traditional engines.
The Japanese alternative to full electrification
At the upcoming Osaka Expo 2025, a six-month technology showcase featuring over 160 global participants, these Japanese brands will unveil vehicles powered by synthetic fuel blends. This major event highlights cutting-edge advancements across various industries, from space technology to medicine, robotics, and next-generation transportation.
The collaborative effort between Toyota, Mazda, and Subaru aims to create brand-specific “distinctive engines” capable of running on carbon-neutral fuels like liquid hydrogen, biofuel, and synthetic fuel. Each manufacturer is focusing on their specialty:
Toyota is developing three different four-cylinder engines optimized for these alternative fuels. Mazda is refining its iconic rotary engines along with a new Skyactiv-Z four-cylinder. Subaru continues to perfect its signature boxer engine design, which Toyota also seems to appreciate for certain applications.
ENEOS Corporation leads the synthetic fuel revolution
A key player in this push is ENEOS Corporation, which completed Japan’s first demonstration plant capable of producing synthetic gasoline in September 2024. Though modest in output—about 42 gallons (160 liters) daily—this facility represents a significant step forward in creating clean energy derived from hydrogen and carbon dioxide.
The beauty of this approach? These engines can retain many of the characteristics enthusiasts love while potentially achieving carbon neutrality. (And let’s be honest, who doesn’t miss the sound of a well-tuned engine when driving?)
What exactly are synthetic fuels?
Synthetic fuels, also called e-fuels, are carbon-neutral alternatives to traditional gasoline and diesel. What makes them special is how they’re produced: they use hydrogen combined with carbon dioxide that’s pulled directly from the atmosphere.
The manufacturing process relies on renewable energy sources like wind and solar power. When the fuel burns in an engine, it releases the same amount of CO₂ that was captured during production, creating a theoretical carbon-neutral cycle.
Don’t mix these up with biofuels, which come from crops that could otherwise serve as food sources. Synthetic fuels instead utilize basic elements found naturally on Earth: oxygen, hydrogen, and carbon dioxide.
Not just a Japanese vision
This technology isn’t exclusive to Japanese brands. German manufacturers have been working on similar solutions for years. Porsche operates a dedicated synthetic gasoline production facility in Chile, demonstrating the global interest in this alternative.
The European Union has recognized synthetic fuels as a viable option after 2035, when the sale of new non-electric vehicles will be prohibited. This exception was key to securing Germany‘s support for the broader electrification mandate.
A balanced approach to future mobility
What’s interesting about the Japanese strategy is its practical nature. Rather than betting everything on a single solution, these manufacturers are creating options. Electric vehicles will certainly play a major role in the future of transportation, but synthetic fuels might allow millions of existing vehicles to remain operational with a much lower environmental impact.
This approach also addresses several real-world challenges that pure electrification faces:
For regions with limited charging infrastructure, synthetic fuels could offer a more immediate path to reducing emissions. And for those who drive in extreme conditions or need to cover long distances regularly, traditional engines running on synthetic fuel might still offer advantages in terms of range and refueling speed.
Have you ever wondered what will happen to all the perfectly good cars on the road today when electric mandates take effect? The Japanese solution might offer an answer.
What this means for auto enthusiasts
For car lovers who appreciate the mechanical symphony of internal combustion engines, this development represents a ray of hope. The distinctive character of different engine designs—Toyota’s efficiency-focused four-cylinders, Mazda’s unique rotary approach, or Subaru’s horizontally opposed boxer configuration—might live on in a carbon-neutral future.
The driving experience associated with these different engine types is something many enthusiasts aren’t ready to give up. With synthetic fuels, they might not have to.
As these Japanese manufacturers prepare to showcase their progress at the Osaka Expo 2025, the automotive world watches with interest. Will this alternative path gain traction globally? Only time will tell, but one thing is clear: the internal combustion engine isn’t going away without a fight.
