Aramco invests in HORSE Powertrain to drive global energy transition

Aramco, a global leader in integrated energy and chemicals, has announced a significant investment in HORSE Powertrain Limited, acquiring a 10% equity stake for €740 million. This strategic move, part of a broader €7.4 billion enterprise valuation deal, involves purchasing shares equally from Renault Group and Geely, each retaining a 45% stake. This transaction is pending regulatory approval and customary closing conditions.

The investment by Aramco is poised to substantially impact the automotive industry’s transition to more sustainable energy solutions. HORSE Powertrain Limited, a collaboration between Renault Group and Geely, was established on May 31, 2024, and is headquartered in London, UK. The company is dedicated to developing next-generation lower emission powertrain technologies.

This strategic partnership aims to enhance the efficiency and environmental footprint of internal combustion engines (ICE) by integrating advanced technologies, fuels, and lubricants. The collaboration also includes Valvoline and will focus on optimizing the performance of HORSE Powertrain Limited’s ICEs, supporting the global push towards an energy-efficient future.

Aramco, Renault, and Geely believe that the automotive sector’s evolution will depend on a blend of technologies. These include highly efficient ICE, hybrid powertrains, and alternative fuels like synthetic and lower-carbon hydrogen, alongside full vehicle electrification. This comprehensive approach is crucial for a smooth and effective transition in global mobility and energy consumption.

Ahmad O. Al Khowaiter, Aramco’s EVP of Technology & Innovation, remarked on the deal’s potential: “Aramco’s investment is expected to directly contribute to the development and deployment of affordable, efficient, and lower-carbon emission internal combustion engines globally. With Geely and Renault, we plan to leverage our collective expertise and resources to support groundbreaking advances in both engine and fuel technologies.”

Luca de Meo, CEO of Renault Group, emphasized the collaborative nature of this venture: “Mitigating carbon in the automotive industry won’t be a solo play. It requires the best players to join forces to open new paths and come up with innovative solutions. That is what’s happening today as we welcome Aramco as a strategic partner in HORSE Powertrain Limited. A dream team is born to reinvent the future of ICE and hybrid technologies.”

Daniel Li, CEO of Geely Holding, also highlighted the importance of global collaboration: “Mitigating greenhouse gas emissions will require global synergies, multi-faceted technological solutions, and the sharing of expertise. With Aramco’s support and expertise in fuel technologies, HORSE Powertrain Limited further cements its role as a leader in pioneering low-carbon and carbon-free fuel technology solutions such as methanol and hydrogen.”

Matias Giannini, CEO of HORSE Powertrain Limited, welcomed Aramco’s expertise, particularly in hydrogen and fuel technologies, as vital to their mission of providing innovative, lower-emission powertrain solutions.