Toyota has introduced a prototype for the world’s first hybrid flexible-fuel vehicle (FFV) in Brazil.

Appearing for the first time at an event in São Paulo, Brazil, the prototype, built by Toyota subsidiary Toyota do Brasil, is based on the Prius platform, capable of running on both gas and ethanol.

“The invention demonstrates our journey in providing a new mobility society,” said Steve St. Angelo, CEO for Toyota Latin America. “I am very proud of our Toyota do Brasil engineers that worked closely with our engineers in Japan to develop the world’s cleanest hybrid vehicle that uses ethanol for our Brazilian customers.”

The prototype, part of its “Environmental Challenge 2050” initiative, marks Toyotas goal to reduce vehicle CO2 emissions by 90 percent, using 2010 as a benchmark, with an additional goal of eliminating CO2 emissions from the manufacturing process.

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Ethanol (E100) is a plant-based fuel that 100-percent renewable, generating less C02 emissions than traditional gas and gas-electric hybrids.

The next step for Toyota ’s hybrid flexible-fuel vehicle is to conduct real-world tests in Brazil, taking advantage of its pole position as second leading producer of ethanol in the world, where its government has provided support on biofuel-based initiatives. A go-to-market date is scheduled within the next one to two years.

It is not yet known of the automaker plans to test it in other countries, such as the U.S., the number one ethanol producing country in the world.