The Formula 1 team, Mercedes, has announced a new multi-year sponsorship extension with the Malaysian fuel firm, Petronas. As the title sponsor of the F1 team, the brand will be a partner until the end of the 2026 season.
As a result of the agreement, the two involved sides will collaborate to develop a 100 per cent sustainable fuel that will make an appearance in the global motorsport series in 2026.
Since the new engine enabled 50% electrification of the power unit, the initial extension enables a more oriented strategy without the interruption of contractual issues behind the scenes.
The collaboration, which originated with Mercedes’ admission into Formula 1 in 2010, will also put a stronger focus on new sustainable technology solutions outside of the racetrack.
The Brackley-based company has already taken several steps in this regard, such as strategies to use Sustainable Aviation Fuel (SAF) for air transport and Hydrotreated Vegetable Oil (HVO 100) biofuel for road freight in order to reduce CO2 emissions and reach net zero carbon status by 2030.
Toto Wolff, Mercedes Formula 1’s Team Principal, said, “We are doing something a little bit unusual – announcing a partnership that will begin in four years’ time. This sends an important message: our team and Petronas are no longer just partners, we are family, and we will be one team for many more years to come. From 2026, advanced sustainable fuel will be at the heart of Formula 1 performance – and this gives us a fantastic opportunity to demonstrate our expertise in this domain, through both the power unit and Petronas Fluid Technology Solutions.
“We are excited to be racing into the future alongside Petronas, with the ambition to set the standard once again, in our on-track performance and by pioneering the transition of a global sports team to a net-zero future.”
Richard Sanders, Mercedes Formula 1’s Commercial Director, commented, “Petronas is an important part of our heritage and history, and we’re delighted that they will continue as our title and technical partner long into the future. The partnership with Petronas will now span two decades and we look forward to making this the most enduring and successful sponsorship in elite global sport.”
Malaysia’s oil and gas company is already supplying Mercedes with highly developed sustainable E10 fuel as a benchmark for current engine regulations. Along with this, it is also creating multiple expenditures to ensure it is future-ready.
Datuk Sazali, Executive Vice President and Chief Executive of Petronas Downstream, stated, “In that same vein, we are already on track with developing a greenfield biorefinery and co-processing at our facilities to supply [SAF] as a cleaner and more viable option for aircraft in our effort to support the aviation industry needs.”
This is in connection with the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), which is defined to become compulsory by law in 2027. Furthermore, the International Automobile Federation‘s (FIA) net zero by 2030 pledge will also have an impact on Formula 1 teams’ logistics services.