The Ethanol-Boosted Direct Injection (EBDI) demonstrator engine is a collaborative project led by Ricardo targeted at reducing the fuel consumption of a spark-ignited engine. This paper describes the design challenges to upgrade an existing engine architecture and the synergistic use of a combination of technologies that allows a significant reduction in fuel consumption and CO₂ emissions. Features include an extremely reduced displacement for the target vehicle, 180 bar cylinder pressure capability, cooled exhaust gas recirculation, advanced boosting concepts and direct injection. Precise harmonization of these individual technologies and control algorithms provide optimized operation on gasoline of varying octane and ethanol content. The current application of EBDI under development is a turbocharged 3.2L V6 targeted to achieve 900 Nm [35 bar BMEP] on E85 (775 Nm [30 bar BMEP] on E0) which enables the replacement of a 6.6L V8 diesel engine in a full-size pickup truck without any deterioration in vehicle performance or driveability, including trailer towing capability. An overview of the design, test methodology, testbed results and vehicle simulation is provided. Optimized second-generation hardware has been specified, designed and packaged to fit into the target vehicle application.