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Aramco Completes Acquisition of 10% Stake in Horse Powertrain Limited

Aramco’s pavilion at the Global Future Investment Initiative conference held in Riyadh (FII webiste)
Aramco’s pavilion at the Global Future Investment Initiative conference held in Riyadh (FII webiste)
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Aramco Completes Acquisition of 10% Stake in Horse Powertrain Limited

Aramco’s pavilion at the Global Future Investment Initiative conference held in Riyadh (FII webiste)
Aramco’s pavilion at the Global Future Investment Initiative conference held in Riyadh (FII webiste)

Aramco, one of the world's leading integrated energy and chemicals companies, through a directly and wholly owned subsidiary, Aramco Asia Singapore Pte. Ltd., has completed the purchase of a 10% equity stake in Horse Powertrain, a global leader in hybrid and internal combustion powertrain solutions.

The transaction builds on Aramco's efforts to develop new mobility solutions with the potential to reduce transport emissions.
The transaction's completion follows the signing of definitive agreements on June 28, 2024, and receipt of all applicable regulatory approvals. Aramco's investment is based on Horse Powertrain's €7.4-billion enterprise valuation, in which Renault Group and Geely (through Geely Holding and Geely Auto) each retain a 45% stake, SPA reported.
Aramco Executive Vice President of Technology & Innovation Ahmad O. Al Khowaiter said: "Addressing transport emissions requires a wide range of approaches that consider the diverse nature of the global vehicle fleet, broad disparities in transport infrastructures, and the specific needs of motorists in different countries. At Aramco, we are pursuing several potential innovative solutions, from lower-carbon synthetic fuels to more efficient internal combustion engines, as we look for opportunities to make a difference. Our investment in Horse Powertrain builds on our considerable R&D in this field. In joining forces with two of the world's leading carmakers, we aim to leverage our collective know-how to take lower-emission mobility solutions forward."
For his part, CEO of Horse Powertrain Matias Giannini said: "We are delighted that Aramco has closed its investment in Horse Powertrain. Aramco's expertise in alternative and synthetic fuels makes Aramco the ideal partner for us to deliver lower-emission powertrain solutions. By strengthening our technology leadership with this partnership, Horse Powertrain will only become more valuable as a partner to automotive brands looking to benefit from our expertise and global production footprint."

CEO of Valvoline Global Operations Jamal Muashsher said that as a technical partner and supplier to Horse Powertrain, "we look forward to applying Valvoline Global's 150-plus years of automotive expertise and tradition of innovation to advance future-ready solutions in internal combustion engine technology, fuels, and lubricants. Our newest joint effort with Horse Powertrain and Aramco builds on Valvoline Global's strong history in original equipment manufacturer partnerships. Through collaboration, we are helping to shape the next generation of mobility."

Aramco's investment is expected to accelerate Horse Powertrain's efforts to develop next-generation internal combustion engines (ICE), hybrid powertrains, and complementary technologies like alternative fuel and hydrogen solutions. As part of the transaction, Aramco and affiliate Valvoline Global Operations will collaborate with Horse Powertrain on innovations in ICE technology, fuels, and lubricants.
Thanks to its technology leadership, global manufacturing, and economies of scale, Horse Powertrain will further solidify its value proposition to automotive and transportation groups worldwide. Horse Powertrain aims to become a peerless partner for accessible, cutting-edge hybrid and ICE powertrain solutions, helping to reduce global vehicle emissions.

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COP16 Riyadh Gathers Policymakers to Combat Desertification, Restore Land

Saudi Arabia’s Environment Minister Abdulrahman Al-Fadli assumes the Kingdom’s presidency of COP16 in Riyadh. (Asharq Al-Awsat)
Saudi Arabia’s Environment Minister Abdulrahman Al-Fadli assumes the Kingdom’s presidency of COP16 in Riyadh. (Asharq Al-Awsat)
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COP16 Riyadh Gathers Policymakers to Combat Desertification, Restore Land

Saudi Arabia’s Environment Minister Abdulrahman Al-Fadli assumes the Kingdom’s presidency of COP16 in Riyadh. (Asharq Al-Awsat)
Saudi Arabia’s Environment Minister Abdulrahman Al-Fadli assumes the Kingdom’s presidency of COP16 in Riyadh. (Asharq Al-Awsat)

Policymakers, international organizations, companies, NGOs and key stakeholders gathered in Riyadh on Monday to address global challenges like land degradation, drought, and desertification at the 16th United Nations Convention to Combat Desertification (COP16).

Saudi Arabia was elected president of COP16 during the opening session, beginning a two-year term to lead efforts in land restoration and fighting desertification.

The COP16 summit in Riyadh came as an opportunity to highlight the vital link between land, oceans, and climate, noting that 75% of freshwater comes from cultivated land, while plants protect 80% of global soil.

Saudi Arabia’s Environment Minister Abdulrahman Al-Fadli said hosting the event reflects the Kingdom’s commitment to environmental efforts. He warned that over 100 million hectares of land degrade each year, affecting 3 billion people and costing the global economy more than $6 trillion annually.

Environmental challenges

Saudi Arabia is ramping up efforts under the United Nations Convention to Combat Desertification to address major environmental challenges and strengthen synergies with other global agreements, including the Rio Conventions on climate change and biodiversity, Al-Fadli stressed.

He highlighted that the Middle East is one of the regions most affected by land degradation, drought, and desertification. Saudi Arabia, he said, is working closely with international partners to tackle these issues.

To achieve its goals, the government has adopted a National Environmental Strategy, created a dedicated fund and five specialized centers, updated regulations to align with global standards, and launched initiatives to curb pollution, boost vegetation cover and improve waste management and climate research.

The minister also pointed to the Saudi Green Initiative, which aims to rehabilitate 40 million hectares of degraded land and expand protected areas to cover 30% of the Kingdom by 2030. This ambitious target was announced in 2021, more than a year before the global goal was set in Montreal in late 2022.

Renewable energy

Saudi Arabia is also working to generate 50% of its energy from renewable sources by 2030 and cut carbon dioxide emissions, Al-Fadli said. The Kingdom has adopted a National Water Strategy to preserve resources and launched recycling projects to promote sustainability.

Al-Fadli noted that Saudi Arabia has also introduced a National Agricultural Strategy to improve production efficiency and sustainably manage farmland, along with a National Food Security Strategy aimed at reducing food loss and waste.

He warned that biodiversity loss and the worsening effects of climate change threaten basic life necessities such as air, water, and food, impacting over 1.8 billion people globally and driving higher migration rates. He emphasized the need for unified international efforts to confront these global challenges.

He added that the UN Convention to Combat Desertification provides a framework for collective action and global collaboration.

Saudi Arabia, he said, is committed to restoring degraded land, expanding green spaces and fostering innovation for sustainable solutions.

The Kingdom also aims to strengthen partnerships among governments, the private sector, local communities, and NGOs, while adopting binding tools to bolster international cooperation.

Moreover, Saudi Arabia unveiled three major initiatives at COP16 to address drought, backed by over $150 million to boost global preparedness.

The Kingdom also introduced an observatory and an atlas, aiming to improve monitoring, prevention, and awareness of drought worldwide.

A UN report released ahead of the summit highlighted the growing crisis of land degradation, linking unsustainable farming to 80% of deforestation, 70% of freshwater use, and nearly a quarter of greenhouse gas emissions. It also classified 46% of global land as dry, stressing the need for urgent action.