Aramco bets on e-fuels in Spainby Ion Jauregui - ActivTrades Analyst
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.
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