Close Menu
Energy NewsEnergy News
  • NEWS
    • Breaking News
    • Hydrogen
    • Energy Storage
    • Grid
    • SMR
    • Projects
    • Production
    • Transport
    • Research
  • SPOTLIGHT
    • Interviews
    • Face 2 Face
    • Podcast
    • Webinars
    • Analysis
    • Columnists
    • Reviews
    • Events
  • REGIONAL
    • Africa
    • Americas
    • Asia
    • Europe
    • Middle east
    • Pacific
  • COMMUNITY
  • ABOUT
    • Advisory Board
    • Contact us
    • Report Your News
    • Advertize
    • Subscribe
LinkedIn X (Twitter) YouTube Facebook
Trending
  • EU–China Energy Diplomacy Amid German Hydrogen Retrenchment: A Deep Dive
  • Merredin BESS Secures $220M Financing but Pays Premium over Global Battery Cost Benchmarks
  • Brazil Stakes Claim in Global Hydrogen Race with €1.3B Investment in Uberaba and Açu Projects
  • Bremen Project Collapse Reveals Fragile Economics Behind Germany’s Green Hydrogen Hopes
  • The Hydrogen Heating Mirage: Why Germany’s “H₂-Ready” Promise Risks Locking in High Costs and Low Returns
  • How Lyten’s Salvage Mission Could Upend Europe’s Battery Wars
  • Doug Wicks on Why Energy Innovation Is Broken—and How to Fix It
  • Cost and Policy Roadblocks Stall LEAG’s H2UB Boxberg Green Hydrogen Hub
LinkedIn X (Twitter) YouTube Facebook
Energy NewsEnergy News
  • NEWS
    • Breaking News
    • Hydrogen
    • Energy Storage
    • Grid
    • SMR
    • Projects
    • Production
    • Transport
    • Research
  • SPOTLIGHT
    • Interviews
    • Face 2 Face
    • Podcast
    • Webinars
    • Analysis
    • Columnists
    • Reviews
    • Events
  • REGIONAL
    • Africa
    • Americas
    • Asia
    • Europe
    • Middle east
    • Pacific
  • COMMUNITY
  • ABOUT
    • Advisory Board
    • Contact us
    • Report Your News
    • Advertize
    • Subscribe
Energy NewsEnergy News
Home Home - Hydrogen
Hydrogen

EIB Backs €672M Hydrogen Engine Project Led by Renault-Geely-Aramco JV in Spain

Arnes BiogradlijaBy Arnes Biogradlija12/06/20253 Mins Read
Share
LinkedIn Twitter Facebook Email WhatsApp Telegram

The European Investment Bank is preparing to inject €300 million into a €672 million hydrogen engine project led by Horse Technologies, the joint venture between Renault, Geely, and Aramco.

The initiative places Spain—specifically the Valladolid plant—at the center of Europe’s pivot toward hydrogen internal combustion engines (ICEs), amid rising pressure to decarbonize transport without fully abandoning combustion systems.

Unlike fuel cells, hydrogen ICEs rely on modified conventional engines to burn hydrogen, potentially offering a transition solution for sectors where electrification is technically or economically unfeasible in the short term.

The hydrogen-powered engine under development in Valladolid is a flagship project for Horse Powertrain Limited, which was formalized in 2023 with a corporate structure that allocates 45% ownership each to Renault and Geely, and 10% to Saudi Aramco. The inclusion of Aramco, whose interest lies in synthetic fuels and combustion innovation, reflects a diversified approach to decarbonization strategies that hedge against battery-dominant futures.

Although hydrogen ICEs are not new, their commercial maturity remains limited due to a lack of refueling infrastructure and unresolved efficiency challenges. Industry tests show hydrogen ICEs emit near-zero CO₂, but they still release NOₓ under certain operating conditions. This creates regulatory complications in markets moving toward zero-emission definitions that exclude combustion-based technologies, regardless of fuel type.

Valladolid’s selection as the manufacturing hub signals a broader recalibration of Spain’s industrial role in the automotive sector. Already home to eight production sites and R&D centers under Horse Technologies, Spain is being positioned as the nucleus of the company’s hydrogen engine development, even as hydrogen fueling stations across the country remain sparse.

The EIB’s expected €300 million contribution—nearly half of the total project cost—highlights Europe’s dual strategy: supporting low-carbon combustion technologies while pursuing full electrification under separate policy tracks. The investment will fund not only R&D but also capital expenditures for new equipment, reinforcing Valladolid’s position in the joint venture’s long-term powertrain plans.

Supply Chain and Market Constraints

Despite the clear financial backing, challenges remain. Hydrogen ICEs face significant commercial constraints due to the minimal deployment of hydrogen refueling stations across Europe. As of early 2025, fewer than 300 public hydrogen stations operate in the EU, and most are geared toward fuel-cell electric vehicles (FCEVs) rather than hydrogen combustion.

In addition, while hydrogen ICEs may offer cost advantages in heavy-duty or legacy fleet segments, their overall efficiency is lower than FCEVs or battery electric vehicles. This technical trade-off means uptake will likely remain constrained to niche markets unless infrastructure expands and regulations adapt to include combustion-based hydrogen systems in “zero-emission” classifications.


Stay updated on the latest in energy! Follow us on LinkedIn, Facebook, and X for real-time news and insights. Don’t miss out on exclusive interviews and webinars—subscribe to our YouTube channel today! Join our community and be part of the conversation shaping the future of energy.

hydrogen
Share. LinkedIn Twitter Facebook Email

Related Posts

Hydrogen

EU–China Energy Diplomacy Amid German Hydrogen Retrenchment: A Deep Dive

02/07/2025
BESS

Merredin BESS Secures $220M Financing but Pays Premium over Global Battery Cost Benchmarks

02/07/2025
hydrogen

Brazil Stakes Claim in Global Hydrogen Race with €1.3B Investment in Uberaba and Açu Projects

02/07/2025
Hydrogen

Bremen Project Collapse Reveals Fragile Economics Behind Germany’s Green Hydrogen Hopes

02/07/2025
Hydrogen

The Hydrogen Heating Mirage: Why Germany’s “H₂-Ready” Promise Risks Locking in High Costs and Low Returns

02/07/2025
Battery

How Lyten’s Salvage Mission Could Upend Europe’s Battery Wars

02/07/2025
Hydrogen

EU–China Energy Diplomacy Amid German Hydrogen Retrenchment: A Deep Dive

02/07/2025
BESS

Merredin BESS Secures $220M Financing but Pays Premium over Global Battery Cost Benchmarks

02/07/2025
hydrogen

Brazil Stakes Claim in Global Hydrogen Race with €1.3B Investment in Uberaba and Açu Projects

02/07/2025
Hydrogen

Bremen Project Collapse Reveals Fragile Economics Behind Germany’s Green Hydrogen Hopes

02/07/2025

Subscribe to Updates

Get the latest news from the hydrogen market subscribe to our newsletter.

LinkedIn X (Twitter) Facebook YouTube

News

  • Inteviews
  • Webinars
  • Hydrogen
  • Spotlight
  • Regional

Company

  • Advertising
  • Media Kits
  • Contact Info
  • GDPR Policy

Subscriptions

  • Subscribe
  • Newsletters
  • Sponsored News

Subscribe to Updates

Get the latest news from EnergyNewsBiz about hydrogen.

© 2025 EnergyNews.biz
  • Privacy Policy
  • Terms
  • Accessibility

Type above and press Enter to search. Press Esc to cancel.