By Todd Anderson, vice president and chief technology officer, PHINIA
The internal combustion engine (ICE) often gets overlooked in sustainability discussions. Yet, despite the focus on electrification, ICEs still play a vital role in the future of road transport. The transition to low-emission technologies is progressing at different paces globally, influenced by economic pressures, regulatory uncertainty and infrastructure challenges. While much attention goes to new propulsion systems, optimising existing ICE technology offers a faster, more scalable path to decarbonisation.
After more than a century of innovation, ICEs are highly refined and used worldwide. As a mature ecosystem of manufacturing assets, supply chains and distribution networks already exists, leveraging these resources can accelerate the shift toward sustainable transport.
Driving innovation
The EU’s Clean Industrial Deal provides a solid framework to decarbonise transport while maintaining industrial competitiveness – supporting innovation across all clean technologies, not just emerging ones. This includes taking a fuel-agnostic approach to improving efficient combustion systems designed for clean, alternative fuels, such as hydrogen internal combustion engines (H2ICE).
To enable this, the EU Innovation Fund must remain accessible to all low-carbon solutions, including ICE enhancements. Supporting ICE-based innovations is key to accelerating decarbonisation while bolstering industrial competitiveness and energy resilience.
Hydrogen: a critical component of the clean energy mix
Hydrogen offers zero-carbon fuel potential across the transport industry, including heavy-duty transport, lighter-duty vehicles, off-road machinery and blending into existing gas grids. As the global demand for hydrogen continues to grow, its role in shaping the automotive future is increasingly evident.
However, geopolitics continue to influence deployment. Nations are competing to build production, control supply chains, and develop national hydrogen strategies – sparking innovation but also risking regional inequalities where infrastructure lags.
In many regions outside the mature markets (China, NW Europe, coastal USA), electrification is limited by grid limitations or economic barriers. Segments such as long-haul, heavy-load commercial transport, off-road operations, or remote/high-load environments face particular challenges. Here, cleaner ICEs running on biofuels, ethanol/methanol, e-fuels, HVO, natural gas or hydrogen present a practical route to decarbonisation while EV infrastructure develops.
Making clean ICE solutions work
Alternative fuel vehicle ICE technology has been proven as a viable solution for on-road applications. Retooling engines and fuel systems for drop-in or blended fuels is technically feasible and reduces emissions now. However, three critical barriers remain:
- Alternative fuel production – Scaling up is essential. Green hydrogen maximises decarbonisation; other sources may bridge in the short term. Currently, production lags demand, and renewable hydrogen costs remain 1.5-6× higher than fossil alternatives.
- Infrastructure – Fuel networks, distribution, storage, vehicle compatibility must scale. Unlike EV roll-out, clean ICEs require less disruptive infrastructure . In Europe, AFIR (Alternative Fuels Infrastructure Regulation) is expanding hydrogen infrastructure, while ethanol and biodiesel often use existing supply chains.
- Cost – Alternative fuels are currently more expensive than conventional ones. But scaling production and infrastructure can reduce this gap. Cooperative action by policymakers and industry is critical to achieving this.
Repositioning ICE as a net-zero enabler
To many, ICEs are often associated with emissions, yet combined with clean fuels and advanced combustion technologies, they can accelerate net-zero progress. H2ICEs running on hydrogen using existing engine platforms offer sustainability, reliability, and cost-effectiveness, particularly suitable for hard-to-electrify segments such as heavy-duty vehicles, long-haul trucking, and off-road machinery.
Retrofitting engines and upgrading fuel injection and exhaust aftertreatment systems achieves significant short-term carbon reductions. Manufacturers are already developing hydrogen technologies and fuel injection solutions to streamline these transitions, making decarbonisation accessible to fleets unable to adopt EVs or fuel cells immediately.
PHINIA is pioneering this approach with hydrogen fuel systems technology development and deployment. Having constructed several demonstrator light-duty commercial vehicles, continuously improved the technology and optimising their performance, these demonstrations show the widespread potential of H2ICEs in the segment and allow hands-on learning to identify optimal use cases.
Scaling the opportunity
Alternative fuels such as hydrogen, e-fuels, HVO, ethanol, methanol, natural gas, and biodiesel are gaining attention, yet policy clarity is needed. Fuel-agnostic strategies require outcome-based regulations rewarding lower emissions regardless of fuel type. We call upon governments to provide fuel-neutral incentives, infrastructure funding, and R&D support for combustion technologies optimised for alternative fuels.
Market diversity in infrastructure, fuel availability, and energy policy demands regionally specific strategies. Global progress relies on localised solutions, from bioethanol-driven fleets in Brazil to hydrogen-CNG hybrids in India – ensuring no region is left behind.
Unlocking the fast track to net zero
Global hydrogen strategies and policy frameworks offer a solid foundation for a sustainable and resilient energy future. However, present-day realities remain important. Upgrading existing engines and infrastructure to operate on clean fuels is not a silver bullet but a practical, actionable route to reducing emissions in the near term.
As the world navigates the geopolitics of hydrogen and low-carbon fuels, as well as the economic aspects of decarbonisation, the most effective approach is not only to embrace new technologies, but also to make smarter use of existing resources.
