Cost Cap Tweak Opens Door for Mercedes Biofuel Switch for F1 Trucks

May 23, 2023

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by Jonathan Noble (motorsport.com) Tweaks to Formula 1's cost cap rules have opened the door for Mercedes to commit to running its race trucks on biofuel this year. -- The German manufacturer trialled using biofuel for its transporters at last year's Belgian, Dutch and Italian Grands Prix triple-header to see if it was feasible to use more sustainable fuel.

That experiment proved a success, in reducing emissions by 89% compared to using normal fossil fuel.

However, the issue of the cost cap proved to be a hurdle in Mercedes committing to using the more environmentally friendly fuel for a full European season.

Biofuel costs are higher and, under the original cost cap rules, fuel costs for taking transporters to races had to come out of the team's annual budget. That, in theory, meant that a switch to biofuel would have had knock-on consequences in terms of resources left for car development.

However, following discussions at the Formula 1 Commission earlier this year, a raft of sustainability initiatives were introduced to encourage teams to take more environmentally friendly options without facing a disadvantage.

It was agreed that, from now on, the costs of biofuel purchased for use in F1's company cars, race transporters and generators will be outside the cost cap.

This means that teams wishing to use more sustainable fuel can commit to the more expensive products without having to worry that it will have to come out of the budget they would rather be spending on car development.

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As well as the Mercedes trucks being powered by biofuel, all Mercedes generators used at race tracks will also utilise the same product.

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Team travel by rail has now been added to costs that no longer have to be included in the cap, as has the expense of buying up to 50 fully electric or hydrogen-powered company cars.

The costs of sustainable aviation fuel, purchased to offset carbon emissions for travel of races and tests, have also been exempted, as have optional environmentally friendly logistical options that F1's commercial rights holder may make available. READ MORE

Major Emissions Reduction Targeted Through Biofuels (Mercedes-AMG PETRONAS F1 Team)

Mercedes make gains off the track thanks to cost cap adjustment (Planet F1)

Mercedes used triple-header to implement successful biofuel trial (Planet F1)

Mercedes target major emissions reductions for European leg through use of biofuels (Monaco 2023)

Mercedes and Petronas extend partnership into F1’s new sustainable fuels era (Monaco 2023)

Mercedes-AMG PETRONAS F1 Team targets over 60% emissions reduction and 200TCO₂ saved through biofuel use for F1’s European season (Mercedes-Bentz)

Formula 1 turns to biofuel to cut logistics emissions (Edie)

DHL takes green logistics to the next level with Formula 1® launching a first truck fleet powered by biofuel to reduce carbon footprint (American Journal of Transportation)

DHL launches Formula 1 biofuel truck fleet (Parcel and Postal Technology International)

Excerpt from Mercedes-AMG PETRONAS F1 Team: Mercedes-AMG PETRONAS F1 Team targets over 60% emissions reduction and 200TCO2 saved through biofuel use for F1’s European season

The Team, PETRONAS and our logistics partners are working together to deliver the aspiration of a fully biofueled European season following a successful trial in 2022 which saw an 89% reduction in CO2 freight emissions.

Working together with our Title and Technical Partner PETRONAS, we are committed to a more sustainable future, driven by continuous technical innovation, and pioneering the transition of our team and Formula One to a Net Zero future.

As part of a sport which travels the world to go racing, we are very aware of the logistical impact of our business. Where we need to transport our people and our freight, we are continuously looking for better ways to do so and aiming to be as sustainable as we can across every area of our transportation requirements.

New sustainability exclusions in the Financial Regulations of the sport were approved at the most recent F1 Commission, enabled by constructive cooperation between the FIA, Formula One and the ten teams. They have unlocked opportunities for innovation in sustainability that were previously in conflict with on-track performance. This initiative for a fully biofueled European season is our first of these projects.

Over nine races across Europe, our fleet of Mercedes-Benz Actros trucks, which transport all the freight required for each race, will refuel with HVO100, a second-generation biofuel. From their departure points in the UK and Germany to arriving in Imola and then travelling through Europe, each truck will cover between 9,000 to 10,000 kms, which we aim to be fully powered by HVO100, reducing the emissions for each kilometre covered by 89%.

This is a significant undertaking, with several known challenges to be overcome connected to supply in certain geographies. That’s why we are announcing our ambition of achieving over 60% emissions reduction and 200 tonnes of CO2 saved at this stage, with full analysis on the final carbon emissions savings and the success of the project to be published at the end of the season.

Our race base generators, used to power our Engineering trucks once they are set up in the Formula One paddock, will also be biofuel powered and served by a dedicated PETRONAS-branded tanker truck from mid-season onwards.

We are taking bold action to address our largest sources of emissions and see sustainable fuels as key to reducing our carbon footprint. After pioneering investment in Sustainable Aviation Fuel, reducing the emissions of our race team personnel air travel footprint by close to 50%, the focus now shifts to lessening the impact of our road-based freight logistics.

Alice Ashpitel, Head of Sustainability at the Mercedes-AMG PETRONAS F1 Team: “Our aspiration to achieve a fully biofueled European season is a challenging and complex project which has been ongoing behind the scenes at the team for over a year. With the support and collaborative effort of our expert partners, we are tackling a key pillar in our strategy for achieving Net Zero and supporting the wider adoption of HVO100 across the sport and logistics industries. This project marks another step in our sustainability journey, but we are on a learning curve. From the evidence of our trial, we are excited to see that 89% emissions reduction is possible for every journey that our trucks make, whilst recognising that supply challenges in sourcing HVO100 across Europe remain significant.”

Datuk Sazali Hamzah, Executive Vice President and Chief Executive Officer of PETRONAS Downstream said: “Today, we are witnessing a significant milestone in the successful use of HVO100 or sustainable fuel in freight transportation for Mercedes-AMG PETRONAS Formula One Team. By offering a solution that is 100% renewable and made from sustainably sourced materials, we help our partners to reduce greenhouse gas emissions by up to 90%. “This is a testament to our commitment to supporting the motorsport’s ambition towards a sustainable future by leveraging collaborative efforts with our partners including Neste. Together with the Mercedes-AMG PETRONAS F1 Team, we will continue to progress in the right direction by perfecting our technology to meet the technical challenge presented by the 2026 power unit regulations.”

Toto Wolff, Team Principal and CEO of the Mercedes-AMG PETRONAS F1 Team: “Motor racing is fuelled by passion and we have a responsibility to use Formula One’s global platform to be more than leaders; we want to be pioneers. Working with our Title and Technical Partner PETRONAS, we see sustainable fuels as central to our Team’s strategy to reduce our largest sources of emissions and achieve Net Zero by 2030. Working together, we can be fully committed to sustainable high performance. Delivering an 89% reduction in emissions for every kilometre that our trucks travel this summer would be a real achievement for the combined efforts of the Team, PETRONAS and our logistical partners who have worked so hard on this innovative and challenging project.” READ MORE

Excerpt from Edie: Trucks powered by biofuel will deliver the European leg of this year’s FIA Formula One World Championships.

Formula 1 has partnered with DHL to implement biofuel as a drop-in replacement for the 18 new trucks that will deliver the Championships this year, transporting goods some 10,600 kilometres across Europe.

The two firms are opting for hydrotreated vegetable oil (HVO) as a fuel, touting a minimum reduction in carbon emissions of 60% compared to standard fuels.

The next race in Europe will take place in Barcelona this weekend. After the Canadian and Australian Grand Prix events, drivers will then be back in Europe for the British, Hungarian and Belgian Grand Prix events in July.

Formula 1’s head of ESG Ellen Jones called the change in fuel “the next step forward” for the sport’s delivery of its 2030 net-zero target.

She added: “We are a sport which operates on a global scale and DHL plays a critical role in delivering the races and helping us address the logistical impact we have as a World Championship.”

Shortly after setting its net-zero target in late 2019, Formula 1 published its baseline carbon figures, revealing that 45% of its footprint is equivalent to logistics.

In comparison, its event operations plus fuel use by the 10 teams accounted for around 8% of its footprint. Powering the racecars was responsible for less than 1% of the overall footprint.

To help tackle logistics emissions, DHL trucks have been fitted with digital technologies to optimize route efficiency when delivering ‘the race between the race’ for Formula 1.

Formula 1 has also redesigned its freight containers to ensure compatibility with next-generation Boeing aircraft. Improved energy efficiency of these aircraft has resulted in an 18% decrease in air freight emissions for the sport.

As for DHL, the company has a 2050 net-zero target. It has interim targets to accelerate the deployment of biofuelled trucks across Europe through to 2025. READ MORE