THE ICE WILL BE AROUND FOR A LONG TIME, ACCORDING TO SAUDI ARAMCO
By Piero Facchin
In 2019, Ahmad Al Khowaiter, CTO of Saudi Aramco, affirmed the longevity of internal combustion engines (ICEs) at the Detroit Auto Show, despite the growing trend towards electric vehicles (EVs). Saudi Aramco supported this assertion by investing in technologies to improve ICE efficiency, such as gasoline compression ignition (GCI) and mobile carbon capture.
Five years later, as EV adoption slows, Saudi Aramco’s position seems validated. Some automakers are expressing cautiousness towards EVs, citing challenges such as affordability and charging infrastructure. An S&P Global Mobility survey reflects this, showing a drop in consumer interest from 86 % in 2021 to 67 % in 2023.
In response to market conditions, Saudi Aramco invested 740 million euros to acquire a 10 % stake in Horse Powertrain, a joint venture between Renault and Geely, which supplies hybrid engines and systems. Saudi Aramco and Horse Powertrain expect the industry to end up buying rather than developing ICEs because of the high costs. Saudi Aramco Executive Vice President Yasser Mufti and Horse Powertrain CEO Matias Giannini predict that ICEs will remain widespread well beyond 2050.
Horse Powertrain, with 17 plants and a capacity of 3.2 million units per year, plans to increase production to 5 million units. As the market evolves, Saudi Aramco is also investing in a global network of service stations.
PICTURE CREDIT: Horse Powertrain