Aramco’s wager on conventional engines and e-fuels got ink in the Financial Times as the company ramps up investments in synthetic fuels derived from renewable energy “to decarbonize transport and narrow the emissions gap between EVs and conventional engines.”

The rationale? Electrifying most road transport is not environmentally logical for countries reliant on fossil fuels for electrical energy production, Aramco’s Chief Technology Officer Ahmad Al Khowaiter told the salmon-colored paper.

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A push into e-fuels: The company is eyeing a 10% stake in Geely-Renault JV Horse Powertrain to establish a new engine manufacturer and a partnership with BYD to share engine technology for hybrid vehicles. These ventures are aimed at reducing carbon emissions while extending the life of combustion engines.

.. and more: The oil giant developing a 50 bbl / d e-kerosene production plant in Spain and a 35 bbl / d e-gasoline production plant at home, both expected to become operational by 2027, Al Khowaiter added. “The idea is to have a supply of fuel to meet the needs of carmakers to test it, as well as for Formula 1” and other motor racing competitions.

BACKGROUND- The push started back in 2023, and gained new momentum after the Trump administration started considering rolling back consumer tax credits for EVs, and the UK reviewed EV sales targets downward while pushing back deadlines for the sale of hybrids to 2035. E-fuels also caught the attention of EU and Chinese carmakers amid the potential to tap a growing demand for biofuels.

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