Saudi Aramco has finished buying a 10% share in the joint venture between Renault and China’s Geely, which focuses on powertrains
Saudi energy company Aramco has finished buying a 10% share in Horse Powertrain. This is part of its plan to create new transportation solutions that help lower emissions, according to a statement released on Monday.
Horse Powertrain Stake
The deal, worth $7.8 billion (€7.4 billion), follows agreements signed in June. Renault from France and Geely from China, through its companies Geely Holding and Geely Auto, each own 45% of the joint venture.
The Horse Powertrain joint venture will operate 17 plants, 5 research and development centers, and serve 10 industrial customers across 130 countries, including car manufacturers. It will employ 19,000 people and have the capacity to produce over 5 million engines each year, including internal combustion, hybrid, and plug-in hybrid engines.
Aramco said this investment will help Horse Powertrain develop advanced internal combustion engines (ICE), hybrid powertrains, and new technologies like alternative fuels and hydrogen solutions.
As part of the agreement, Aramco and its affiliate Valvoline Global Operations will work with Horse Powertrain on innovations in engine technology, fuels, and lubricants.
Innovative Solutions
Ahmad O. Al Khowaiter, the Executive Vice President of Technology & Innovation at Aramco, said the company is exploring several new ideas, including lower-carbon synthetic fuels and more efficient internal combustion engines.
Yasser Mufti, Aramco’s Executive Vice President for Products and Customers, told Reuters in September that the 10% investment meets all the company’s financial and strategic goals.
Mufti also mentioned that Aramco is spending “hundreds of millions” to build two demonstration plants in Saudi Arabia and Spain. These plants will produce e-fuels that can power cars with internal combustion engines while reducing their carbon emissions.
Horse Powertrain plans to become a global supplier of ready-to-use engines for carmakers using advanced fuels. Mufti added that by 2050, half of the world’s car fleet will still use traditional combustion engines or hybrid ones.
M&A deals
Aramco is looking for more mergers and acquisitions (M&A). In March, it bought all of Chile’s Esmax Distribución. In May, it acquired a 40% share in Gas and Oil Pakistan. Last September, Aramco announced it was joining the global liquefied natural gas (LNG) market by buying a small share in the US company MidOcean Energy.
Published: 3rd December 2024
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