Mazda is convinced that the path to CO2-neutral driving does not have to mean the end of the combustion engine. Instead, the company continues to work on algae-derived fuels that could power existing cars with net-zero or even negative CO2 emissions.
Mazda CFO Jeff Guyton told Australian journalists at the 2025 Japan Mobility Show that the company’s biofuels research aims to make gasoline engines part of the long-term solution rather than the problem.
“Wouldn’t it be great if we could supply all the cars on the road with a low-carbon or carbon-neutral fuel?” he said.
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“There are more than a billion cars on the planet, and you know, we’re talking about phasing out electric vehicles, which, by the way, are not carbon neutral. In the end, they’re just carbon neutral.”
Mr Guyton explained that Mazda engineers have already made small quantities of fuel from algae farmed for its high oil content.
“We’ve managed to create, or find a way to grow, algae whose cells have the right kind of fats and oils so we can easily get the fuel,” he said.
“The fuel itself could fit in any car. It doesn’t have to fit in a dedicated Mazda engine, and that’s the point… Couldn’t we have a carbon neutral fuel that fits in any car and covers the installed vehicle base?”
Mazda says the prototype fuel can be refined from algae harvested in controlled tanks. Around 1000 liters of water are used to produce one liter of fuel every two weeks. The current process is slow and expensive, but the company believes it proves the concept is technically viable.
While some automakers support e-fuels synthesized from captured CO2 and hydrogen, Mazda’s approach focuses on biological carbon recycling using living organisms to convert atmospheric carbon into energy-rich oil, which is then converted into fuel.
Mr Guyton added that the company’s ultimate goal is to make such fuels not only carbon neutral, but also carbon negative, meaning the production process removes more CO2 than the vehicle emits.
“While others talk about carbon neutrality, we talk about the possibility of being carbon negative if done right,” he said.
“So the more you drive, the less greenhouse gases are produced. Wow, that’s an interesting idea.”
The research is part of Mazda’s long-term “multi-solution strategy,” which combines electrification with continued investment in cleaner combustion technologies.
At the trade fair in Tokyo, the company also presented the Vision X-Coupé and Vision concepts
In Australia, where the New Vehicle Efficiency Standard (NVES) will penalize cars with higher emissions from 2025, Mazda’s push for alternative fuels could help extend the life of its petrol range while meeting tougher CO₂ targets. While the brand’s first electric car, the Mazda 6e, will soon be launched, full battery electric vehicles remain a low priority.
For Mr Guyton, the algae program is a logical counterpoint to the government’s exclusive focus on electric vehicles.
“If our society spent half as much time talking about biofuels as we do electric vehicles… maybe we could actually do something,” he said.
Mazda hasn’t committed to a production schedule, but its willingness to support unconventional ideas shows a brand still committed to finding its own path to cleaner driving, even if it takes a little longer to grow.
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