Automotive carbon neutral fuels

Automakers, carbon neutral fuel companies

From 2025 to 2026, the battery electric vehicle (BEV) market experienced continuous growth, while automotive original equipment manufacturers (OEMs) underwent clear reconstruction of their electrification strategies in response to a regional demand gap, fierce price competition, delayed charging infrastructure development, and low profitability. Although decarbonization is an irreversible trend, feasible methods have shifted from dependence on BEVs to more realistic approaches, based on regional energy situations, purchasing power, and existing infrastructure. While the development and implementation of synthetic fuels and low-carbon hydrogen have stalled, the adoption of bioethanol and biodiesel has increased as promising, practicable decarbonization methods, particularly in emerging countries. Countries view these biofuels as a policy tool for simultaneously achieving energy security, promoting agriculture, reducing fuel imports, and cutting greenhouse gas emissions.
This report systematically analyzes the adoption status of bioethanol, biodiesel, hydrotreated vegetable oil (HVO), e-fuel, biogas, and flexible fuel vehicles (FFVs) in various regions and maps out market trends based on blending mandates, incentive policies, fuel standards, infrastructure development, material procurement, and cost structures. Additionally, the report analyzes automakers' electrification strategies, fuel companies' investments in low-carbon fuels, and national energy security policies to reveal the latest trends and the future outlook for the carbon-neutral automotive fuel market—a perspective that cannot be fully captured by BEVs alone.

I. Current State of the Automotive Carbon-Neutral Fuel Market

1. Growing Energy Security Concerns
2. A Pragmatic Approach to Decarbonization Policies and Technology Neutrality
3. Competition for Carbon-Neutral Fuels with the Aviation and Maritime Sectors
4. Project Selection and Emphasis on Economic Viability

II. Trends by Fuel

1. Bioethanol and Biodiesel
   1-1. Definition and Classification of Fuels
   1-2. Materials and Production Technologies
   1-3. Costs and Environmental Benefits
   1-4. Regional Trends

• The United States
• Canada
• Brazil
• China
• The European Union
• The United Kingdom
• India
• Japan
• Thailand
• Argentina
• Colombia
• Philippines
• Paraguay
• Indonesia
• Malaysia
• Peru
• Vietnam

2. Synthetic Fuel
   2-1. Definition and Classification of Fuels
   2-2. Materials and Production Technologies
   2-3. Costs and Environmental Benefits
   2-4. Regional Trends

• Europe
• The United States
• Japan

3. Hydrogen
   3-1. Definition and Classification of Fuels
   3-2. Materials and Production Technologies
   3-3. Costs and Environmental Benefits
   3-4. Regional Trends

• China
• South Korea
• Europe
• The United States
• Japan

III. Carbon-Neutral Fuel Strategies by Related Companies

1. Automotive Companies' Carbon-Neutral Fuel Strategies by
   1-1. Toyota Motor Corporation
   1-2. Mazda Motor Corporation
   1-3. Suzuki Motor Corporation
   1-4. General Motors Company
   1-5. Ford Motor Company
   1-6. Stellantis N.V.
   1-7. enable Inc.
2. Fuel Companies' Carbon-Neutral Fuel Strategies
   2-1. Chevron Corporation
   2-2. ExxonMobil Holdings Corporation
   2-3. THE BRITISH PETROLEUM COMPANY P.L.C. (BP)
   2-4. Shell plc.
   2-5. TotalEnergies SE
   2-6. Repsol S.A.
   2-7. PT Pertamina
   2-8. China Petroleum & Chemical Corporation (Sinopec)
   2-9. Indian Oil Corporation Ltd. (IOCL)
   2-10. ENEOS Corporation
   2-11. Idemitsu Kosan Co.,Ltd.
   2-12. ITOCHU ENEX CO.,LTD.
   2-13. Neste Corporation
   2-14. Euglena Co., Ltd.
   2-15. HIF Global
   2-16. Haltermann Carless
   2-17. Tatsuno Corporation

IV. Market Size Forecast

1. Assumptions and Variables in Market Forecasting
   1-1. Gasoline and Diesel Fuel Consumption
   1-2. Number of Owned Vehicles
   1-3. Mandatory Blending Ratio
   1-4. Raw Material and Production Capacity
2. Market Forecast
   2-1. Bioethanol
   2-2. Biodiesel
   2-3. Hydrogen