Leading global energy and chemicals company Aramco has signed definitive agreements through a subsidiary to acquire a 10% equity interest in HORSE Powertrain. Formed on May 31, 2024, by Renault Group and Geely, HORSE Powertrain Limited is based in London, UK. This acquisition places Aramco alongside Renault Group, Zhejiang Geely Holding Group, and Geely Automobile Holdings.
The transaction involves Aramco purchasing equal shares from Renault Group and Geely, who will each retain a 45% stake. The investment, based on a €7.4 billion enterprise valuation, is pending regulatory approvals and standard closing conditions.
Aramco’s investment aims to advance more efficient mobility solutions, enhancing its role in the global energy transition. The agreement also includes collaborative efforts with Valvoline on technologies, fuels, and lubricants to improve the performance of HORSE Powertrain’s internal combustion engines (ICE).
The future of the automotive industry hinges on a mix of technologies, encompassing highly efficient ICEs, hybrid powertrains, alternative fuels such as lower-carbon synthetic fuels and hydrogen, and vehicle electrification. Aramco, Renault Group, and Geely are aligned in their vision to support a global transition towards sustainable energy and mobility.
HORSE Powertrain is set to lead the development of next-generation, lower-emission technologies. Aramco’s extensive R&D capabilities, particularly in synthetic fuels, hydrogen, and ICE optimization, will be crucial in this mission.
Ahmad O. Al Khowaiter, Aramco’s Executive Vice President of Technology & Innovation, noted, “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 help reduce transport greenhouse gas emissions while meeting the needs of both vehicle manufacturers and motorists,” he added.
Renault Group CEO Luca de Meo remarked, “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.”
Geely Holding CEO Daniel Li added, “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.”
HORSE Powertrain Limited CEO Matias Giannini expressed enthusiasm for the partnership, stating, “I am delighted that Aramco has joined HORSE Powertrain Limited. Their expertise in fuels and hydrogen makes them a great partner for us to deliver cutting-edge, lower-emission powertrain solutions, driving our industry’s carbon mitigation efforts forward. Together, we will set new benchmarks for innovation in the automotive sector.”
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