Aramco invests 10% in HORSE Powertrain Limited, a joint venture by Renault Group and Geely. This partnership will enhance the development of sustainable powertrains and synthetic fuels, driving the future of automotive decarbonisation.
HORSE Powertrain, the newly established powertrain solutions company by Renault Group and Geely, has secured a 10% equity investment from Aramco. The deal values HORSE at €7.4 billion, with Renault Group and Geely each retaining 45% equity stakes. The investment by Aramco will support HORSE’s growth and contribute to the development of competitive powertrains and synthetic fuel solutions.
The implications of the deal could be far-reaching. HORSE, formed on May 31, 2024, and headquartered in London, UK, is expected to produce five million powertrain units annually, offering a comprehensive portfolio of advanced technologies to global partners. Aramco’s involvement will enhance HORSE’s capabilities, leveraging Aramco’s expertise in synthetic fuels, hydrogen and internal combustion engine (ICE) optimisation to develop long-term sustainable and accessible decarbonised solutions.
“[Aramco’s] expertise in synthetic fuels and hydrogen makes them a great partner for us to deliver cutting-edge, low-emission powertrain solutions”
- Matias Giannini, CEO of HORSE
Ahmad O. Khowaiter, Aramco Executive Vice President of Technology & Innovation, stated: “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 ground-breaking advances in both engine and fuel technologies. With a strong emphasis on innovation, our goal is to provide solutions that can reduce transport emissions while meeting the needs of both vehicle manufacturers and motorists.
”In securing long-term partnership between Valvoline and HORSE Powertrain Limited, Renault Group, and Geely in connection with this investment, we are also demonstrating Aramco’s ability to both create and capture value at the global level.”
“To achieve net zero emissions will require global synergies, multi-faceted technological solutions, and the sharing of expertise”
- Daniel Li, CEO, Geely Holding
Renault Group CEO Luca de Meo, also commented, adding: “Decarbonising 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.”
Geely Holding CEO Daniel Li said, “To achieve net zero 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.”
Aramco, Renault Group, and Geely share the view that successful decarbonisation of the automotive industry will require a combination of various technologies.
These include highly efficient ICE, transmissions and hybrid powertrains, alternative fuels such as lower-carbon synthetic fuels and hydrogen, as well as vehicle electrification. These technologies will support an orderly energy and mobility transition around the world.
Matias Giannini, CEO of HORSE, expressed his excitement, “I am delighted that Aramco has joined HORSE Powertrain Limited. Their expertise in synthetic fuels and hydrogen makes them a great partner for us to deliver cutting-edge, low-emission powertrain solutions, driving our industry’s decarbonisation forward. Together, we will set new benchmarks for innovation in the automotive sector.”
HORSE’s mission is to lead the race towards ultra-low emission next-generation technologies, and will now see a boost in that direction, being facilitated by Aramco’s global network of R&D centres where research is conducted on synthetic fuels, hydrogen and ICE optimisation.
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