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FPT Industrial has just released news that promises to shake up the engine market: an investment of R$127 million in Brazil until 2028 for the research and development of new biofuel-powered engines. The announcement was made during Fenatran and marks a bold step towards the transition of energy matrices in the sector. With this investment, the company intends to boost the use of renewable energy, focusing especially on biodiesel, natural gas and ethanol as cleaner and more accessible fuel sources.
According to Carlos Tavares, president of FPT for Latin America, the R$127 million investment is earmarked for the development of sustainable technologies, with a strong focus on the energy potential that the region offers and new engines. “Our local engineering team will use the funds to develop new biofuel projects, with a strong focus on biodiesel, gas and ethanol. Why not consider a 100% ethanol-powered truck? For some applications, it could be very interesting,” commented Tavares. The proposal is ambitious and opens up possibilities for the domestic market to adopt energy solutions that bring benefits to the environment and that align with global carbon reduction requirements.
Projects and market expansion with new biofuel-powered engines
FPT already has an ongoing project for an ethanol-powered engine that will initially be used in sugarcane harvesters, a partnership with New Holland. The expectation is that, in the future, this technology can be adapted for heavy trucks that transport sugarcane after harvesting. This innovation will allow 100% renewable operations in agribusiness, highlighting the importance of research into new biofuel-powered engines for the advancement of the sector.
In addition, FPT is developing Repower FPT, a solution for replacing diesel engines with gas engines certified to the Euro 6 emissions standard. According to Gerson Moreira, after-sales and network development manager, this technology has a huge potential market in Brazil, with around 500 vehicles eligible for this sustainable upgrade.
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The idea is that this solution can be applied to any vehicle that currently uses a diesel engine, offering a reduced environmental impact and access to cheaper fuel.
Sales scenario and outlook for the sector
FPT projects that the truck segment will continue to grow. In 2023, the market registered a 12% increase, with approximately 203 thousand units sold, also considering the vehicles of the Daily line. For 2025, the estimate is for more moderate growth, of around 3%, totaling 209 thousand units. This scenario is due to the increase in demand and the reduction of stocks, which has heated up the truck industry in Brazil, in addition to the new engines.
On the other hand, the agricultural machinery sector felt the impact of extreme weather conditions in 2024, with heavy rains in the South and severe drought in the Cerrado, which caused a drop in sales of around 15% compared to the previous year. Even so, FPT expects a slight recovery for 2025, with growth of 2% and sales reaching 73 thousand units.
The construction machinery sector, although expected to grow by 5% in 2024, is expected to face a downturn next year, with an estimated 4% drop due to the credit restrictions expected for 2025. This scenario, according to Tavares, could be a challenge for the sector, but the company believes that the launch of new biofuel-powered engines could bring a long-term solution to the construction market as well.
A commitment to a sustainable future
With this series of initiatives, FPT reaffirms its commitment to Brazil and sustainability, focusing on biofuels as a viable alternative to replace fossil fuels in several areas.
The robust investment in the production of new engines powered by biofuels, such as biodiesel, gas and ethanol, represents an opportunity to transform the energy matrix of the engine industry, especially in Brazil, where the availability of these resources is widespread.
This strategic decision places FPT at the forefront of sustainability innovation, leveraging the potential of the Brazilian market to create a solid foundation for the use of biofuels in transportation and the agricultural industry. It is a new era for engines and the environment, where investment in renewable technologies leads the way to a cleaner and more efficient future.
Great news for Brazil producing ethanol engines and other types of environmentally friendly fuels. May more industrial sectors come to put Brazil at the forefront!!!