The Ford 6.7L Powerstroke diesel engine, nicknamed the "Scorpion," was first introduced in the Superduty lineup in 2011. It produces 390 horsepower and 735 lb-ft of torque, and an update brought it to 400 horsepower and 800 lb-ft of torque. It is also Ford's most emissions-friendly diesel engine to date and has increased fuel economy. The engine uses cast-aluminum reverse-flow cylinder heads, which reduces turbo lag, and has 32 valves, 4 per cylinder. It also uses 4 rockers and 4 pushrods per cylinder, unlike the previous 6.4L Powerstroke, which is believed to contribute to its quietness.
The Ford 6.7L Powerstroke diesel engine uses a unique cooling system with two separate systems. The primary cooling system cools the engine, while the secondary cooling system cools the air-to-water intercooler, transmission fluid, fuel cooler, and EGR system. Two separate belt-driven pumps are used to circulate the coolant. This design separates the EGR cooling from the engine cooling, which helps prevent particles from breaking down and traveling through the cooling system, unlike in the 6.4L and 6.0L Powerstroke engines. The air-to-water intercooler also saves space and provides superior cooling characteristics. It allows for cooler, denser air and reduces boost-drop, compared to traditional air-to-air intercoolers.
Ford's 6.7L Powerstroke diesel engine featured several new specifications that made it superior to the previous 6.0L and 6.4L Powerstroke engines. One of these is the Selective Catalytic Reduction (SCR) emissions system, which helped reduce emissions by up to 80% compared to the 2010 model. This system works by injecting diesel exhaust fluid into the exhaust stream, reducing emissions before they enter the Diesel Particulate Filter. This also decreases the number of "regens" (regenerations) that are required, which in turn improves fuel economy. Another improvement is the new design of the exhaust gas recirculation (EGR) system, which was a common source of problems for 6.0L and 6.4L Powerstroke owners. The new EGR valve regulates exhaust gases before they reach the EGR coolers, which decreases sludge build-up and clogging, and the two EGR coolers are housed in the same casing and can expand and contract to decrease the chance of failure. As a result, EGR-related failures are far less common on the 6.7L Powerstroke than on previous generations.
For the 2017 model year, the torque of the Ford 6.7L Powerstroke diesel engine was increased to 925 lb-ft at 1800 rpm, while horsepower remained the same. In 2018, to compete with the Duramax and Cummins engines from GM and Ram, Ford further increased the output to 450 horsepower and 935 lb-ft of torque. This was done to keep up with the competition, as the Duramax engine had a 5 horsepower gain over the Powerstroke in 2017, and the Cummins engine for 2018 had a 10 lb-ft torque gain over the Powerstroke if the Powerstroke's output hadn't been increased for 2018. The engine is also available for Blue Bird Vision school buses. As of 2020, the Powerstroke's output was increased again to 475 horsepower at 2600 rpm and 1050 lb-ft at 1600 rpm, making it the best-in-class diesel in horsepower.