Ferrari extends its longstanding partnership with Shell. Ferrari extend Shell innovation agreement.

Formula 1 is slowly approaching a new era. First there will be the change regarding the technical regulations scheduled for next year, which should change the appearance of the single-seaters; then, even more awaited, the new generation of power units – starting from 2026 – which is making the Volkswagen group think with conviction of joining the sport with one or two of its brands (Audi and Porsche). But a further novelty will also be brought by the introduction of bio-fuels. We will start next year with 10% of the component, to arrive then – starting from 2025-2026 – to the exclusive use of sustainable fuels.

From this point of view, the news emerged – confirmed by the Reuters.com website – of the renewal of Ferrari’s contract with Shell, which has been a partner of the red company for 70 years in the field of fuel. The Dutch multinational expects the use of ethanol in Formula 1 to attract even more consumers to use it. The agreement also involves the Brazilian energy company Raizen, of which Shell is a shareholder.

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The agreement with Raizen could give the Maranello team an advantage in terms of fuel, as the other teams will most likely use first generation ethanol when these new fuels are first introduced, next year. “We will not be supplying second-generation ethanol to other teams,” Shell Mobility Vice President István Kapitány said in an interview with Reuters. Kapitány also said Shell believes this fuel could enhance the Ferrari team’s competitiveness. The Scuderia, Shell and Raizen did not disclose the financial terms of the signed agreement.

The second-generation ethanol to be used by Ferrari is made of sugarcane bagasse, a byproduct that used to be thrown away. Second-generation ethanol is already produced in a Raizen unit in the Sao Paulo state countryside and raises ethanol productivity by 50% without adding planted area, according to Raizen.

The company is building a second factory to produce cellulosic ethanol, which will raise annual second-generation ethanol capacity from 40 million liters to 120 million liters by 2023.