MANILA: Aramco will acquire a 10 percent equity interest in HORSE Powertrain Limited, a newly-established engine firm by Geely and the Renault Group.

Per Geely, Aramco — one of the world’s leading integrated energy and chemicals companies — has signed a definitive agreement to own a portion of the aforementioned powertrain solutions company.

The purchase is estimated to set the Aramco back some €7.4 billion or P468.491 billion.

“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. In securing long-term partnership between Valvoline Global 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,” Aramco Technology and Innovation Vice President Ahmad O. Al Khowaiter said.

With Aramco poised to own 10 percent of HORSE Powertrain Limited, both Geely and the Renault Group are expected to be left equally with a 45 percent share in the company.

“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,” Geely Holding Chief Executive Officer (CEO) Daniel Li explained.

Likewise Renault Group’s CEO affirmed the Geely figurehead’s statement by saying: “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 (internal combustion engine) and hybrid technologies.”

HORSE Powertrain Limited is expected to have an annual production of some five million units. Its portfolio will consist of full hybrids, long-range plug-in hybrids, and ICEs that use alternative fuels such as ethanol, methanol, liquefied petroleum, compressed natural gas, and hydrogen.

“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,” HORSE Powertrain Limited CEO Matias Giannini was quoted saying.

Photos from HORSE Powertrain Limited

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