Why Are Japanese Carmakers Betting on Clean Fuel Made from Grass and Paper?
If you’ve been following the auto industry lately, you’ve probably noticed a big push toward electric vehicles. But here’s something you might not expect: some of Japan’s biggest carmakers—Nissan, Mazda, Subaru, and Toyota—are doubling down on a different kind of clean energy. Instead of putting all their chips on batteries, they’re teaming up with ENEOS, a major energy company, to develop a new type of ethanol fuel. And get this: it’s made from grass, wood, and even recycled paper. No, really.
What Makes This Ethanol Different from Regular Biofuels?
You might be thinking, “Wait, haven’t we had ethanol blends like E85 for years?” True, but most of the ethanol in today’s fuel comes from crops like corn or sugarcane. That’s a problem, because it means using up valuable farmland and resources that could be growing food. ENEOS is flipping the script by focusing on non-food biomass—think switchgrass, wood scraps, and old newspapers. This approach, known as cellulosic ethanol, sidesteps the food-versus-fuel debate and taps into resources that would otherwise go to waste.
According to the International Energy Agency, cellulosic ethanol has the potential to reduce lifecycle greenhouse gas emissions by up to 90% compared to gasoline. That’s a game-changer if it can be scaled affordably.
How Are These Fuels Being Tested in the Real World?
Here’s where things get exciting for car enthusiasts: these new plant-based fuels aren’t just a lab experiment. They’re being put to the test in Japan’s Super Taikyu racing series, specifically in the ST-Q class. If a fuel can handle the punishing demands of endurance racing—high revs, long hours, and extreme conditions—it’s a good sign it can work in your daily driver, too.
This isn’t just about going green for the sake of it. Racing has always been a proving ground for new tech, from disc brakes to hybrid powertrains. Now, it’s helping to show that low-carbon fuels can deliver performance without the guilt trip.
Why Not Just Go All-In on Electric Cars?
It’s a fair question. Battery-electric vehicles (BEVs) are making headlines, and for good reason—they’re quiet, quick, and emit zero tailpipe emissions. But the reality is more complicated. Not every region has the infrastructure for mass EV adoption, and some drivers (especially in rural areas or colder climates) still prefer the flexibility of internal combustion engines.
Yuichiro Fujiyama, ENEOS’s Chief Technology Officer, put it bluntly in a recent interview: while BEVs and hydrogen fuel cells are crucial, hybrid and combustion vehicles can also play a big role in cutting CO2—if we clean up the fuel itself. That means e-fuels, synthetic fuels, and advanced biofuels all have a seat at the table.
What Can Japan Learn from Brazil’s Ethanol Success?
If you want proof that ethanol can work at scale, look no further than Brazil. Thanks to government support and a robust flex-fuel vehicle market, ethanol blends are not only common—they’re often cheaper than gasoline. Nearly 80% of new cars sold in Brazil can run on high-ethanol blends, according to the Brazilian Sugarcane Industry Association.
Japanese automakers are watching closely, but they’re also realistic. ENEOS points out that subsidies alone aren’t a silver bullet. The real test is whether consumers are willing to pay a bit more for cleaner fuel, knowing it helps fight climate change. That’s a tough sell, but attitudes are shifting, especially among younger drivers.
Are Carbon-Neutral Fuels Really the Future for Combustion Engines?
Subaru’s CTO, Tetsuo Fujinuki, summed it up nicely: cars are more than just transportation—they’re a passion. For many, the sound and feel of a combustion engine is part of the magic. Carbon-neutral fuels offer a way to keep that experience alive while still moving toward net-zero emissions. It’s not about resisting change; it’s about offering more options.
Recent studies from the World Economic Forum suggest that a mix of solutions—electric, hybrid, and low-carbon fuels—will be needed to hit global climate targets. No single technology can do it all.
What’s Next for Drivers and the Industry?
Don’t expect to see grass-and-paper fuel at your local gas station tomorrow. There are still hurdles to clear, from scaling up production to making sure the fuel works reliably in millions of vehicles. But the groundwork is being laid, and the racing series is a major step forward.
The big takeaway? Cleaning up transportation isn’t about perfection—it’s about smarter adjustments. Start with one change this week, and you’ll likely spot the difference by month’s end. Whether it’s supporting alternative fuels, considering a hybrid, or just staying informed, every step counts. The road to a greener future might just be paved with yesterday’s newspaper and a handful of grass.