By Ion Jauregui - ActivTrades Analyst
Saudi Aramco (TADAWUL: 2222) is stepping on the gas in its synthetic fuel strategy. The Saudi oil company has announced an investment of hundreds of millions of dollars in new e-fuel plants in Spain and Saudi Arabia, with the goal of reaching a production of 85,000 barrels per day by 2027. A move that promises to shake up the energy market and will directly impact several Spanish companies.
In parallel, Aramco is strengthening its presence in the mobility sector with the purchase of a 10% stake in Horse Powertrain, the joint venture between Renault (EPA: RNO) and Geely (HKG: 0175), specializing in low-emission combustion engines. It is also adding strategic alliances such as the one with Chinese manufacturer BYD (HKG: 1211).
Spain, a key piece in Aramco’s gameboard
The choice of Spain is not random. The country is positioning itself as one of the most advanced European industrial hubs in green hydrogen and carbon capture—essential technologies for the production of e-fuels. Although Aramco has not yet detailed the specific locations of its investments, the impact on the Spanish industrial fabric will be significant.
Among the most directly exposed companies are:
• Repsol (BME: REP): a pioneer in e-fuels and biofuels, the oil company could find both a new competitor and a potential strategic partner in some projects.
• Cepsa (not publicly traded but owned by Mubadala Investment Company and Carlyle Group (NASDAQ: CG)): undergoing its transformation toward clean energy under its "Positive Motion" plan, it could benefit from new commercial opportunities in this niche.
• Iberdrola (BME: IBE) and Acciona Energía (BME: ANE): as leaders in renewables, they would be natural suppliers of green energy needed for e-fuel production.
• Técnicas Reunidas (BME: TRE): specialized in engineering large industrial plants, it is well positioned to secure contracts related to the development of these new facilities.
Beyond oil
Aramco’s push into e-fuels comes at a crucial moment, as the debate over the future of combustion engines remains open in Europe. The Saudi oil giant does not hide its ambition: to keep the internal combustion engine alive, but under a low-emission model.
For Spain, Aramco’s arrival means not only multi-million-dollar investments but also an opportunity to establish itself as a relevant player in the synthetic fuels market—a sector poised to play a key role in decarbonizing heavy transport and aviation.
E-fuels, an alternative pathway for mobility
Aramco’s commitment to e-fuels reflects an alternative approach within the global debate on the energy transition. While Europe and much of the world push for transport electrification, synthetic fuels emerge as a complementary solution for hard-to-electrify sectors such as maritime transport, aviation, or heavy-duty vehicles.
E-fuels are produced by combining green hydrogen and carbon dioxide captured from the atmosphere or industrial sources, resulting in a fuel that can be used in traditional combustion engines but with a neutral carbon footprint.
This approach would allow the current fossil fuel infrastructure—refineries, distribution networks, and engines—to be maintained and adapted to modern times, without the need for a complete replacement by electric technologies.
Aramco bets on e-fuels in Spain
Saudi Aramco (TADAWUL: 2222), the world’s largest oil company, is accelerating its transformation by heavily investing in synthetic fuels. The Saudi company has announced an investment of hundreds of millions of dollars in new e-fuel plants in Spain and Saudi Arabia, with the ambitious goal of reaching a production of 85,000 barrels per day by 2027. This is a strategic move that could significantly impact the Spanish business landscape, especially in energy and infrastructure sectors.
This push is not happening in isolation. Aramco has also acquired a 10% stake in Horse Powertrain, the joint venture formed by Renault (EPA: RNO) and Geely (HKG: 0175), focused on developing low-emission combustion engines. At the same time, it maintains collaboration agreements with BYD (HKG: 1211), the Chinese electric vehicle giant. With these maneuvers, Aramco seeks to consolidate its position in the global sustainable mobility market, diversifying its traditional reliance on crude oil.
Spain, a strategic pillar
The choice of Spain as one of the expansion hubs is not accidental. The country is becoming a European benchmark in green hydrogen and carbon capture projects—key technologies for the production of e-fuels. In addition, its renewable capacity and institutional commitment to decarbonization position Spain as a natural destination for this type of investment.
Although Aramco has not yet specified the exact locations of its plants, it is expected that the most advanced regions in renewables and industrial infrastructure, such as Andalusia or Aragon, could benefit from this wave of capital.
The main Spanish companies that could be affected are:
• Repsol (BME: REP): one of the leaders in synthetic fuel and biofuel research in Spain. Its energy transition strategy and experience in e-fuel projects position it as a potential competitor or strategic ally in this new stage.
• Cepsa (owned by Mubadala Investment Company and Carlyle Group (NASDAQ: CG)): focused on its “Positive Motion” plan to lead sustainable mobility, it could leverage the rise of synthetic fuels to strengthen its business.
• Iberdrola (BME: IBE) and Acciona Energía (BME: ANE): both companies lead the development of renewables in Spain and could be key green electricity providers for e-fuel production processes.
• Técnicas Reunidas (BME: TRE): a company specialized in engineering large-scale energy and industrial projects, it is a natural candidate to design and build the new plants driving this revolution.
REPSOL.ES Analysis
The oil company’s share price reached a peak in April last year, hitting 15.275 euros per share. It has since been correcting downward toward a low of 9.420 euros following tariff-related events and the decline in oil prices. The current range for the stock lies between 14 euros and 10.670 euros. In early trading hours, the share is quoted at 10.735 euros, slightly below the indicated range. The Point of Control (POC) is at 12.755 euros, the midpoint of the current triple bell curve and slightly above the support area of 12.455 euros. The RSI currently stands slightly underbought at 46.55%. The moving averages have not yet shown a directional shift; unless they do, Repsol’s price could revisit the 9.900 and 9.420 euro levels. If the moving averages confirm a change, we could see a move toward 11.555 euros.
A direct impact on the Spanish ecosystem
For Spain, Aramco’s arrival represents an opportunity to strengthen its position in the new global energy map. The Saudi investment promises to energize key industries, attract new strategic alliances, and generate jobs in high-tech sectors related to energy and sustainability.
In the medium term, the success of these projects could also encourage the creation of an industrial ecosystem around e-fuels, integrating engineering, chemical, renewable, and mobility companies into a common decarbonization horizon.
Meanwhile, Aramco takes a firm step to secure a place in the future of energy... and Spain, if it plays its cards right, could be one of the big winners.
*******************************************************************************************
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at their own risk.
Saudi Aramco (TADAWUL: 2222) is stepping on the gas in its synthetic fuel strategy. The Saudi oil company has announced an investment of hundreds of millions of dollars in new e-fuel plants in Spain and Saudi Arabia, with the goal of reaching a production of 85,000 barrels per day by 2027. A move that promises to shake up the energy market and will directly impact several Spanish companies.
In parallel, Aramco is strengthening its presence in the mobility sector with the purchase of a 10% stake in Horse Powertrain, the joint venture between Renault (EPA: RNO) and Geely (HKG: 0175), specializing in low-emission combustion engines. It is also adding strategic alliances such as the one with Chinese manufacturer BYD (HKG: 1211).
Spain, a key piece in Aramco’s gameboard
The choice of Spain is not random. The country is positioning itself as one of the most advanced European industrial hubs in green hydrogen and carbon capture—essential technologies for the production of e-fuels. Although Aramco has not yet detailed the specific locations of its investments, the impact on the Spanish industrial fabric will be significant.
Among the most directly exposed companies are:
• Repsol (BME: REP): a pioneer in e-fuels and biofuels, the oil company could find both a new competitor and a potential strategic partner in some projects.
• Cepsa (not publicly traded but owned by Mubadala Investment Company and Carlyle Group (NASDAQ: CG)): undergoing its transformation toward clean energy under its "Positive Motion" plan, it could benefit from new commercial opportunities in this niche.
• Iberdrola (BME: IBE) and Acciona Energía (BME: ANE): as leaders in renewables, they would be natural suppliers of green energy needed for e-fuel production.
• Técnicas Reunidas (BME: TRE): specialized in engineering large industrial plants, it is well positioned to secure contracts related to the development of these new facilities.
Beyond oil
Aramco’s push into e-fuels comes at a crucial moment, as the debate over the future of combustion engines remains open in Europe. The Saudi oil giant does not hide its ambition: to keep the internal combustion engine alive, but under a low-emission model.
For Spain, Aramco’s arrival means not only multi-million-dollar investments but also an opportunity to establish itself as a relevant player in the synthetic fuels market—a sector poised to play a key role in decarbonizing heavy transport and aviation.
E-fuels, an alternative pathway for mobility
Aramco’s commitment to e-fuels reflects an alternative approach within the global debate on the energy transition. While Europe and much of the world push for transport electrification, synthetic fuels emerge as a complementary solution for hard-to-electrify sectors such as maritime transport, aviation, or heavy-duty vehicles.
E-fuels are produced by combining green hydrogen and carbon dioxide captured from the atmosphere or industrial sources, resulting in a fuel that can be used in traditional combustion engines but with a neutral carbon footprint.
This approach would allow the current fossil fuel infrastructure—refineries, distribution networks, and engines—to be maintained and adapted to modern times, without the need for a complete replacement by electric technologies.
Aramco bets on e-fuels in Spain
Saudi Aramco (TADAWUL: 2222), the world’s largest oil company, is accelerating its transformation by heavily investing in synthetic fuels. The Saudi company has announced an investment of hundreds of millions of dollars in new e-fuel plants in Spain and Saudi Arabia, with the ambitious goal of reaching a production of 85,000 barrels per day by 2027. This is a strategic move that could significantly impact the Spanish business landscape, especially in energy and infrastructure sectors.
This push is not happening in isolation. Aramco has also acquired a 10% stake in Horse Powertrain, the joint venture formed by Renault (EPA: RNO) and Geely (HKG: 0175), focused on developing low-emission combustion engines. At the same time, it maintains collaboration agreements with BYD (HKG: 1211), the Chinese electric vehicle giant. With these maneuvers, Aramco seeks to consolidate its position in the global sustainable mobility market, diversifying its traditional reliance on crude oil.
Spain, a strategic pillar
The choice of Spain as one of the expansion hubs is not accidental. The country is becoming a European benchmark in green hydrogen and carbon capture projects—key technologies for the production of e-fuels. In addition, its renewable capacity and institutional commitment to decarbonization position Spain as a natural destination for this type of investment.
Although Aramco has not yet specified the exact locations of its plants, it is expected that the most advanced regions in renewables and industrial infrastructure, such as Andalusia or Aragon, could benefit from this wave of capital.
The main Spanish companies that could be affected are:
• Repsol (BME: REP): one of the leaders in synthetic fuel and biofuel research in Spain. Its energy transition strategy and experience in e-fuel projects position it as a potential competitor or strategic ally in this new stage.
• Cepsa (owned by Mubadala Investment Company and Carlyle Group (NASDAQ: CG)): focused on its “Positive Motion” plan to lead sustainable mobility, it could leverage the rise of synthetic fuels to strengthen its business.
• Iberdrola (BME: IBE) and Acciona Energía (BME: ANE): both companies lead the development of renewables in Spain and could be key green electricity providers for e-fuel production processes.
• Técnicas Reunidas (BME: TRE): a company specialized in engineering large-scale energy and industrial projects, it is a natural candidate to design and build the new plants driving this revolution.
REPSOL.ES Analysis
The oil company’s share price reached a peak in April last year, hitting 15.275 euros per share. It has since been correcting downward toward a low of 9.420 euros following tariff-related events and the decline in oil prices. The current range for the stock lies between 14 euros and 10.670 euros. In early trading hours, the share is quoted at 10.735 euros, slightly below the indicated range. The Point of Control (POC) is at 12.755 euros, the midpoint of the current triple bell curve and slightly above the support area of 12.455 euros. The RSI currently stands slightly underbought at 46.55%. The moving averages have not yet shown a directional shift; unless they do, Repsol’s price could revisit the 9.900 and 9.420 euro levels. If the moving averages confirm a change, we could see a move toward 11.555 euros.
A direct impact on the Spanish ecosystem
For Spain, Aramco’s arrival represents an opportunity to strengthen its position in the new global energy map. The Saudi investment promises to energize key industries, attract new strategic alliances, and generate jobs in high-tech sectors related to energy and sustainability.
In the medium term, the success of these projects could also encourage the creation of an industrial ecosystem around e-fuels, integrating engineering, chemical, renewable, and mobility companies into a common decarbonization horizon.
Meanwhile, Aramco takes a firm step to secure a place in the future of energy... and Spain, if it plays its cards right, could be one of the big winners.
*******************************************************************************************
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at their own risk.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.