Since 2014, Mercedes has dominated F1 ever since the introduction of hybrid engines.
Formula 1 is moving towards an agreement on a new engine design that will be used starting in 2026. It looks increasingly likely that at least one brand from the Volkswagen Group will join the grid.
VW was attracted to two key aspects of the sport’s plans.
They simplify the hybrid engines and make it easier for newcomers to compete with those who have been racing for decades.
In recent months, the VW Group was involved in discussions about the new engine formula. Senior F1 insiders claim they are becoming more certain that at least one VW brand will enter the racetrack in 2026. This is most likely Audi or Porsche.
F1 would see that as a vote of confidence. It is a vote of trust from the second-largest car manufacturer in the world. F1 believes that electric power is not the only solution to sustainable motive transport.
Although talks are still not over, a general agreement has been reached on how the future will look. However, smaller details remain to be clarified.
What is changing with the engines?
One key difference between F1's engines from 2026 onwards and current ones is the removal of the MGU-H.
This is the part that uses the turbo-charger to recover energy. This is the core of F1's incredible efficiency levels. However, it is also extremely complex and costly to perfect. It has not been proven to be applicable to standard road-car engines.
VW has stated that it won't enter F1 if engines retain the MGUH. This is because it would be nearly impossible for them and their current suppliers to catch up with the level of expertise they have built up over the past seven year, such as Mercedes, Honda, Mercedes, and Renault.
It was difficult for major car companies to abandon the MGU-H, especially not Mercedes, who have dominated F1 ever since 2014, when these hybrid engines were introduced. All have agreed to it, but with some caveats.
First, the engines will remain hybrids. They will continue to perform at the same level as the existing engines, but they will be significantly more powerful than the current engines. This is due to a significant scaling up of power from the MGUK, which recovers energy from rear axle.
This allows the engine to achieve its key goals - to be simpler and less expensive.
Formula E has seen Porsche, Mercedes and Audi all pull out of the race.
Are there other points of contention?
The MGU-H is a key component of F1's current power-unit operation. Therefore, all engines manufacturers must design new engines to get rid of it.
However, existing manufacturers will only accept a change as a condition of VW entering F1.
A budget cap and other restrictions on development will be part of the new regulations governing engines starting in 2026. Any new manufacturer, such as a VW brand, should be allowed to spend more and/or develop more during their entry process or when they start in F1.
However, the existing manufacturers, particularly Ferrari, have refused to agree. Although negotiations are ongoing, Ferrari has said no. This makes it unlikely that they will agree to this.
Red Bull is another area of contention. After Honda, their partner in F1's end-of-season exit, Red Bull is establishing themselves as an independent engine manufacturer. Red Bull will continue to use their Honda engine design but maintain their brand-new factory.
Other manufacturers are concerned about Red Bull's possible link-up with VW. There are also arguments over whether Red Bull should be considered as an existing manufacturer under the new rules or a new manufacturer. Both financial and sporting benefits are being discussed.
These and other details are still not finalized. It will take compromise to get there. However, the sport is "in a good spot" and there are talks about moving forward.
A second hint about VW's involvement with F1 may be found in an unusual direction: the latest race added to the calendar.
Qatar's deal with F1 for a race in November, followed by a 10-year agreement starting in 2023, is the largest ever signed between the sport and a promoter. The Gulf state is investing more in F1 than any other country, thereby demonstrating its commitment to the sport.
Qatar also has a 14.6% stake in the VW Group, it turns out. External-link
F1 is looking at several options for replacing conventional fuel
These are sustainable fuels.
F1 must introduce sustainable fuels as a part of its strategy to become net-zero in carbon emissions by 2030.
This year, the sport took a small step forward in this direction with the introduction E10 fuels. 10% of these fuels are made from biofuels. They look exactly like the fuel that was introduced to UK garages this summer.
However, plans for 2026 seem far more ambitious. F1 is claiming that they will introduce a sustainably-produced fuel that is zero carbon.
There are two main options: fuels made from biofuels and synthetic e-fuels.
They can be used as a 'drop in' alternative to standard fossil fuels within an internal combustion engine. Both have the same problem, however. They release CO2 into our atmosphere just as standard gasoline.
Their sustainability is based on the fact that they produce a vastly reduced amount of carbon emissions throughout the lifecycle of the fuel.
What is the difference?
One is made of biomass, which can include feedstocks and animal or plant oil as well as bio-waste. This product is carbon neutral as it emits the same amount of carbon from combustion as the source.
The industrial process of creating synthetic e-fuels is to capture CO2 from the atmosphere and combine it with hydrogen to create fuel. The CO2 that is generated by burning fuel is the same as the CO2 that was taken directly from the atmosphere.
Synthetic fuels have a major drawback: they require a lot energy to make. If the energy source isn't sustainable, the fuel won't be very green.
F1 is currently neutral on the type of sustainable fuel that it will use starting in 2026. This is partly due to the fact that its fuel suppliers are split on which route is best.
F1 will likely be decided by the competition among fuel suppliers to make the most environmentally-friendly petrol replacement.
A new plant to produce synthetic e-fuel is being constructed in south Chile, near the port of Punta Arenas. It is being funded by several companies. VW-owned Porsche.
Why is there a push for sustainable fuels?
You might be wondering why F1 isn't just going electric at a time when the road car market is moving more towards electrification and why all these car companies want to push a petrol-free replacement that still produces CO2?
It is currently not possible to drive a car that has F1-level performance using electricity. The technology is just not yet advanced enough. The same holds true for other modes of transport.
Energy density is the key issue. The key issue is energy density. Batteries don't have as much of it as fossil fuels. A battery capable of powering an airliner to Australia would, however, be much too heavy to lift off.
It will take many years for batteries to be able to power passenger planes, ocean-going vessels, combine harvesters, etc., if ever.
While some western governments are moving towards banning petrol- and diesel-powered cars within the next few years, millions more cars with internal combustion engines will continue to be on the roads for many decades.
Sustainable fuels may be a solution to dramatically reduce carbon emissions.
But what about the long term?
F1's shift to sustainable fuels is logical on many levels. It cuts carbon emissions and symbolically helps to protect the sport's future.
F1 has a way to maintain the high performance levels necessary to create the "wow" factor that is so important to its appeal while still taking environmental concerns seriously.
It's not a long-term solution. It is a step-stone to a more sustainable and truly zero-carbon future while the auto industry and the rest of the world work out how that future will look.
Are they solid-state batteries? Are they using hydrogen fuel cells that emit only water, as some of the most prominent figures in the sport have suggested? Oder is there another technology on the horizon that's not yet available?
Although no one knows for sure, there are rumors that hydrogen could be the base of the next engine formula due to be introduced in the 2030s.
