If you enjoy keeping up with innovations in the automotive industry, here’s some exciting news: Amid the global race for sustainable solutions, a new move by Stellantis, a giant in the automotive sector, is making waves with a $6 billion investment in flex-fuel engines for South America.
While many still see hydrogen as the “fuel of the future”, Stellantis may be signaling that the future is already here, and it’s flex.
Reinventing a familiar fuel
If you’re not familiar with the term, flex-fuel engines are those that can run on either gasoline and ethanol.
Ethanol, although not widely used or well-known in Europe or the United States, is very common in South America, where this strategy by Stellantis was designed for. That’s because in South America, especially in countries like Brazil, there is many agriculture and biofuel producers.
Stellantis’ plan is to make the flex-fuel engine, common in South America, gain a global relevance by developing versions of this engine in electric hybrid cars. The goal is compete directly with companies that invest in hydrogen-powered cars.
Why not invest in hydrogen-powered cars?
Although hydrogen is light, clean and abundant, it still faces high production costs, complex distribution and technological limitations in many countries.
Stellantis’ choice for flex-fuel engines powered by ethanol and gasoline is very simple: Ethanol is made from sugar cane and corn, so ends up being a cheap fuel production compared to hydrogen. Because it’s made with natural elements, ethanol also ends up being a great option when we think about sustainability, as it’s less polluting — we cannot forget how important non-polluting initiatives and energy transition are on the agenda in the automobile market.
Also, because it already has consolidated production in several countries, it can be distributed through existing infrastructures, making the entire investment process more simple and profitable to Stellantis.
By betting on flex-fuel hybrids, Stellantis avoids a “future trap” and embraces a realistic, ready-now solution, especially in emerging markets where full electrification remains out of reach.
This isn’t just technical innovation, it’s geopolitical strategy
By putting hybrid flex-fuel engines at the core of its global strategy, the company adapts the energy transition to local contexts rather than enforcing a single model. Stellantis’ decision goes beyond engineering, and a lot of other companys are trying to do the same.
That means countries in South America or countries like India, Indonesia and South Africa — that are also agricular countries — can start decarbonizing righ away, without waiting for full electric cars or cars with fuel that are difficult to produce and import. A flex-fuel car, powered by ethanol and gasoline and also electric, might make more sense than a Tesla, that is too expensive.
There’s a very positive side effect: with more demand for ethanol, local farmers gain strength and the agribusiness chain grows, generating more jobs and more income, especially in underdeveloped countries. Brazil, for example, that has decades of experience using flex-fuel technology, now has an opportunity to export both fuel and expertise. Research centers and universities in Brazil have a chance to increase collaboration with other countries. The environmental and financial impact is immediate at the global economy.
What we can expect from the future of automotive sector?
Stellantis’ major project involves the production of more than 40 new flex-fuel car models by 2030, which will be an important milestone for the company.
With an engine that fits in a box but carries a $6 billion investment, Stellantis created a new possibility for agricultural countries contribute to the reduction of carbon emissions, and every company should looking at new less polluting forms of fuel, whitou giving up of technology.
