Aramco Joins Forces With Renault-Geely In HORSE Powertrain For Greener Engines

Aramco, a leading energy and chemicals company, has signed agreements to acquire a 10% equity interest in HORSE Powertrain Limited. This new global powertrain solutions company was formed by Renault Group and Geely. Aramco will purchase the stake from Renault Group and Geely, who will each retain 45% equity stakes.

The acquisition price is based on a €7.4 billion enterprise valuation. The closing of this deal is subject to regulatory approvals and other customary conditions. Aramco aims to enhance its role in the global energy transition through this investment by developing more efficient mobility solutions.

HORSE Powertrain Limited is headquartered in London, United Kingdom. The company’s mission is to lead the development of lower-emission next-generation technologies. Aramco's global network of research-and-development centres will support this mission by focusing on synthetic fuels, hydrogen, and internal combustion engine (ICE) optimisation.

The agreements also include collaboration between Aramco and Valvoline on technologies, fuels, and lubricants. This partnership aims to improve the performance of HORSE Powertrain Limited’s internal-combustion engines (ICEs). Aramco, Renault Group, and Geely believe that the automotive industry needs a combination of various technologies to support an orderly energy transition globally.

"Aramco’s investment is expected to directly contribute to the development and deployment of affordable, efficient, and lower-carbon emission internal combustion engines globally," said Ahmad O. Al Khowaiter, Aramco's executive vice president of technology & innovation.

Industry Perspectives

Luca de Meo, Renault Group chief executive, stated that mitigating carbon emissions in the automotive industry requires collaboration among top players. "A dream team is born to reinvent the future of ICE and hybrid technologies," he added.

Daniel Li, Geely Holding chief executive, emphasised the need for global synergies and multi-faceted technological solutions to reduce greenhouse-gas emissions. He noted that with Aramco’s expertise in fuel technologies, HORSE Powertrain Limited strengthens its leadership in pioneering low-carbon fuel technology solutions like methanol and hydrogen.

Future Goals

Matias Giannini, HORSE Powertrain Limited chief executive, expressed delight at Aramco joining their efforts. He highlighted that Aramco's expertise in fuels and hydrogen makes them an excellent partner for delivering lower-emission powertrain solutions.

This strategic partnership aims to set new benchmarks for innovation in the automotive sector while addressing carbon mitigation efforts effectively.

"With Geely and Renault, we plan to leverage our collective expertise and resources to support ground-breaking advances in both engine and fuel technologies," said Ahmad O. Al Khowaiter.

This collaboration underscores Aramco’s ability to create value at a global level while contributing significantly to reducing transport greenhouse-gas emissions.

With inputs from SPA