RIYADH: The Ƶn Oil Co., also known as Saudi Aramco, has signed a letter of intent with Chinese multinational automotive company Geely and French multinational automobile manufacturer Renault to establish a new powertrain technology firm.
This falls in line with the energy giant’s efforts to promote and further boost the use of low-emission technologies.
Under the terms of the letter of intent, the parties will work hand in hand to discuss opportunities to join a new transmission technology company that is on track to be established by Geely Holding Group and Renault Group respectively.
The new company will mainly focus on transmission technologies for internal combustion engines and hybrid engines as well.
Saudi Aramco's investment will be utilized in supporting the new company's growth, facilitating its research and development of industrial fuel solutions, and boosting its next-generation hydrogen technologies.
“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,” said Aramco Executive Vice President of Downstream Mohammed Al Qahtani.
As part of the agreement, both Geely and Renault are expected to retain a joint and equal stake in the new independent entity.
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.
He said Aramco’s entry brings to the table unique know-how that will help develop breakthrough innovations in the fields of synthetic fuels and hydrogen.
Through a global network of 17 transmission plants and five research and development centers across three continents, the new firm aims to serve as an independent global supplier to more than 130 countries and regions.
In addition to this, the new firm is expected to have an annual production capacity of over 5 million internal combustion engines, hybrid engines, and transmissions.
Daniel Li, CEO of Geely Holding Group, said: “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.”
Saudi Aramco’s intention to invest in the new firm goes in line with its vision to lead in low-carbon, zero-carbon fuels such as methanol and hydrogen.
