Formula 1 team, Mercedes, has announced a new multi-year sponsorship extension with Malaysian fuel company, Petronas. As title sponsor of the F1 team, the brand will be a partner until the end of the 2026 season.
Following this agreement, the two parties involved will work together to develop a 100% sustainable fuel that will make its appearance in the World Motorsport Series in 2026.
Since the new engine allowed for 50% electrification of the powertrain, the initial expansion allows for a more focused strategy without disruption of behind-the-scenes contract issues.
The collaboration, which began with Mercedes’ admission to Formula 1 in 2010, will also place greater emphasis on new sustainable technology solutions off the track.
The Brackley-based company has already taken several steps in this regard, such as strategies to use Sustainable Aviation Fuel (SAF) for air travel and Hydrotreated Vegetable Oil (HVO 100) biofuel for road freight to reduce CO2 emissions and reach net zero. carbon status by 2030.
Toto Wolff, Mercedes Formula 1 Team Principalsaid, “We are doing something a bit unusual: announcing a partnership that will start in four years. 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 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 area, through both power unit and fluid technology solutions. Petronas.
“We are excited to race into the future alongside Petronas, with the ambition to set the standard again, in our on-track performance and in pioneering the transition of a global sports team into a clean future. zero.”
Richard Sanders, Commercial Director of Mercedes Formula 1commented, “Petronas is an important part of our heritage and history, and we are delighted that they will continue to be our title and technical partner in the future. The partnership with Petronas will now span two decades and we look forward to making it the most enduring and successful sponsorship in global elite sport.
The Malaysian oil and gas company already supplies Mercedes with highly developed sustainable E10 fuel as a benchmark for current engine regulations. Along with this, it also creates multiple expenses to ensure that it is ready for the future.
Datuk Sazali, Executive Vice President and General Manager of Petronas Downstreamstated, “Along the same lines, we are already on track to develop a new biorefinery and co-processing at our facilities to provide [SAF] as a cleaner and more viable option for aircraft as part of our efforts to meet the needs of the aviation industry.
This is in line with the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), which is set to become mandatory by law in 2027. In addition, the International Federation of automotive (FIA) by 2030 will also have an impact on the Formula 1 teams’ logistics services.