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Mercedes-AMG Petronas Seeks Cost Cap Flexibility To Advance F1 Sustainability

By Siti Radziah Hamzah

KUALA LUMPUR, Oct 16 (Bernama) -- Mercedes-AMG Petronas Formula One (F1) Team is working with the Fédération Internationale de l'Automobile (FIA) and Formula One Management (FOM) to ensure the sport's cost cap regulations allow enough flexibility to adopt sustainable technologies without compromising competitiveness on the track.

Mercedes-AMG Petronas deputy team principal Bradley Lord said the challenge of pursuing sustainability was becoming more complicated as the team began introducing environmentally friendly materials into race car components governed by the cost cap.

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"It gets harder as the journey continues because as we start to touch the car, we come into areas that are affected by the cost cap and therefore are much more complicated to navigate.

"That requires really good collaboration and communication with the FIA and F1 to ensure there is flexibility and space in the rules to be able to bring innovative solutions without costing performance," he told a media briefing hosted by Mercedes and its lighting technology partner Signify during the recent Singapore Grand Prix.

Lord said Mercedes had already introduced more sustainable carbon fibre components on its race cars, but adopting such materials could cost significantly more without offering any performance advantage.

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He said the early adoption of more sustainable technologies was often accompanied by higher costs compared with existing solutions, with sustainable carbon fibre potentially costing 30 per cent more than conventional materials.

Lord said the additional expenditure was particularly challenging as no performance advantage was gained from such materials, despite the sport's push towards greater sustainability.

He said discussions were being held on how the additional costs of adopting more sustainable technologies could be treated under F1's cost cap regulations without putting the team at a competitive disadvantage.

Performance parity and sporting equity needed to be maintained while allowing innovation to proceed, as the adoption of more expensive, performance-neutral materials would otherwise be difficult to justify when on-track performance remained the team's priority, said Lord.

Mercedes had also worked collaboratively on frameworks for the introduction of sustainable fuel, involving Petronas and other fuel manufacturers across the F1 grid.

He noted that while the development represented an important technological advancement, such cutting-edge products also came at a higher cost, presenting similar financial considerations.

Meanwhile, Signify global head of sponsorship Nathalie Quéré said valuable lessons had been gained from the company's partnership with Mercedes in navigating F1's cost cap framework, where ambitious innovation and performance objectives had to be pursued within clearly defined financial and regulatory constraints.

She said that opportunities for innovation could still be explored within these limitations, with the challenge being to achieve the best possible outcomes while remaining within the established framework.

"You are talking about a cost cap from a sport perspective, but when we look at how we can bring our innovation, it is also not infinite. It is about how we can also bring the best solution to your ambition, to your budget as well. It is a business at the end of the day," said Quéré.

She added that both Signify and Mercedes share similar ambitions in innovation, technology, sustainability and performance despite operating in different industries.

Signify announced its partnership with Mercedes in July 2024, focusing on technological innovation, energy efficiency and sustainability.

Under the partnership, Signify provides energy-efficient, connected and circular lighting solutions to support the team's operations and sustainability objectives, while also collaborating on the development of Mercedes' climate transition plan towards achieving net-zero emissions.

The partnership also aims to enhance experiences for F1 fans and support the performance and well-being of drivers and team personnel through lighting technology.

Signify has separately set a target to achieve net-zero emissions by 2040 under its own Climate Transition Plan, reflecting its broader efforts to decarbonise the lighting industry.

Beyond race car development, Lord said Mercedes had invested in sustainable aviation fuel (SAF), renewable biodiesel and the electrification of its logistics operations to reduce its environmental footprint.

The team is investing nearly US$10 million over the next few years in SAF to stimulate market development and address emissions associated with transporting personnel and equipment around the world.

Lord said Mercedes had introduced an electric truck into its logistics fleet this year, with plans to add several more next year, while also exploring the potential use of sustainable marine fuel.

He said sustainability initiatives pioneered by Mercedes had subsequently been adopted more widely across F1, including access to SAF for freight transportation and renewable energy solutions at European races.

"We take pride in the fact that many of our innovations have been embraced more widely in the sport. But the big trade-off is the cost trade-off versus the cost gap. How can we make it cost-neutral to be more sustainable?

"If we can do that, we will unlock a lot of potential in the future," said Lord.

-- BERNAMA