Mazda believes the road to carbon-neutral motoring doesn’t have to mean the end of the internal-combustion engine. According to car.news, the company continues its efforts in developing algae-derived organic fuels that could power existing cars with net-zero or even carbon-negative emissions.
Speaking at the 2025 Japan Mobility Show, Mazda CFO Jeff Guyton told Australian journalists that the company’s biofuel research aims to make petrol engines part of the long-term solution, not the problem.

“Wouldn’t it be great if we could apply a reduced-carbon or carbon-neutral fuel to all those cars that are running around on the streets?” he said.
Guyton explained that Mazda’s engineers have already produced small batches of fuel made from algae cultivated for its high oil content.
“We’ve succeeded in creating or finding a way to grow algae that have the right sort of fats and oils inside their cells, so that we can easily get to the fuel,” he said.
“The fuel itself could go in any car. Doesn’t have to go in a special Mazda engine, and that’s the point… couldn’t we have a carbon-neutral fuel that could go in any car and can address the installed vehicle base?”
Mazda says the prototype fuel can be refined from algae harvested in controlled tanks, using about 1000 litres of water to produce one litre of fuel every two weeks. The current process is slow and expensive, but the company believes it proves the concept is technically viable.
While some automakers have supported e-fuels made from captured CO₂ and hydrogen, Mazda’s approach focuses on biological carbon recycling, using living organisms to convert atmospheric carbon into energy-rich oil, which is then turned into organic fuel.
Mr. Guyton added that the company’s ultimate goal is to make such fuels not only carbon-neutral but carbon-negative—meaning the production process removes more CO₂ than vehicles emit.
“While other people are talking about carbon neutral, we are talking about potential for carbon negative, if it’s done the right way,” he said. “So that, you know, the more you drive, the less greenhouse gas there is. Wow, that’s kind of an interesting idea.”
According to car.news, this initiative is part of Mazda’s long-term “multi-solution strategy,” which combines electrification with investment in cleaner combustion technologies. At the Tokyo show, the company also presented the Vision X-Coupe and Vision X-Compact concepts, showcasing its direction toward integrating electric and combustion drivetrains with future fuels and carbon-capture systems.
In Australia, where the New Vehicle Efficiency Standard (NVES) will penalize high-emission cars from 2025, Mazda’s push for alternative fuels could help extend the lifespan of its petrol lineup while meeting stricter CO₂ targets.
Mazda hasn’t announced a timeline for production yet, but its commitment to alternative, sustainable technologies highlights a brand eager to carve its own path toward a cleaner, carbon-negative automotive future.
