Aramco to Invest in Synthetic Fuel and Hydrogen Tech; Signs Letter of Intent With Geely and Renault Group
Aramco, the Saudi Arabian oil company, has signed a letter of intent to become a minority stakeholder in a new powertrain technology company (PWT) alongside Geely and Renault Group.
The PWT will focus on internal combustion and hybrid powertrain technologies, and Aramco’s investment will support the growth of the company and contribute to key research and development across synthetic fuels solutions and next-gen hydrogen technologies.
Geely and Renault Group will retain equal equity stakes in the new independent entity. The planned company aims to be a standalone global supplier with a combined capacity of over five million internal combustion, hybrid and plug-in hybrid engines and transmissions per year, supplying over 130 countries and regions. The partnership is expected to help develop breakthrough innovations in the fields of synthetic fuels and hydrogen, and raise the joint powertrain company together with Geely Group to the next level.
Aramco’s entry brings unique know-how that aligns with the company’s broader efforts across its global operations.
Daniel Li, CEO of Geely Holding Group, said: “We welcome Aramco in joining us in the creation of a globally leading sustainable powertrain company. The proposed investment by Aramco represents recognition from global industry leaders in the PWT’s future business prospects and vision for pioneering low and carbon-free fuels such as methanol and hydrogen.”
Luca de Meo, CEO of Renault Group said: “This partnership with Aramco will raise our joint Powertrain company together with Geely Group to the next level and give it a head start in the race towards ultra-low-emissions ICE powertrain technology. Aramco’s entry brings to the table unique know-how that will help develop breakthrough innovations in the fields of synthetic fuels and hydrogen.”
Mohammed Y. Al Qahtani, Aramco Executive Vice President of Downstream, said: “This letter of intent represents a new milestone in our ongoing commitment to transportation technologies and presents a platform to support Aramco’s research and development in engine innovation. Our planned collaboration with Geely and Renault would support the development of powertrains across the automotive industry, and aligns with our broader efforts across our global operations.”
About Geely Automobile Holdings Limited
Geely Automobile Holdings Limited (the “Company” and its subsidiaries, collectively the “Group”) (SEHK stock code: 175) is an automobile manufacturer, focusing on development, manufacturing and sales of passenger vehicles. The Group sells most of its products in the China market and has also expanded its sales through export to other countries in the past few years. The Group has production bases in various parts of the mainland China, with more than 40,000 employees. The Company is listed on the main board of The Stock Exchange of Hong Kong Limited (“SEHK”) and is a constituent of the Hang Seng Index since 2017. The controlling shareholder of the Company is Zhejiang Geely Holding Group.
About Renault Group
Renault Group Renault Group is at the forefront of a mobility that is reinventing itself. Strengthened by its alliance with Nissan and Mitsubishi Motors, and its unique expertise in electrification, Renault Group comprises 4 complementary brands – Renault, Dacia, Alpine and Mobilize – offering sustainable and innovative mobility solutions to its customers. Established in more than 130 countries, the Group has sold 2.1 million vehicles in 2022. It employs nearly 111,000 people who embody its Purpose every day, so that mobility brings people closer. Ready to pursue challenges both on the road and in competition, Renault Group is committed to an ambitious transformation that will generate value. This is centred on the development of new technologies and services, and a new range of even more competitive, balanced and electrified vehicles. In line with environmental challenges, the Group’s ambition is to achieve carbon neutrality in Europe by 2040. www.renaultgroup.com
Aramco is a global integrated energy and chemicals company. We are driven by the core belief that energy is opportunity. From producing approximately one in every eight barrels of the world’s oil supply to developing new energy technologies, our global team is dedicated to creating impact in all that we do. We focus on making our resources more dependable, more sustainable and more useful. This helps promote stability and long-term growth around the world. www.aramco.com