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The secret is not only in the engine, but in its combination with the hybrid part and with a synthetic fuel made without oil, from waste. The set achieves 44.2% thermal efficiency, a high number for the category, and promises to cut almost 1.8 tons of CO2 per year in an average car. All without changing a single car part.
A gasoline engine that consumes less than 3.3 liters per 100 kilometers, about 40% below the European average, was presented by Horse Powertrain, a joint venture controlled by Renault, Geely, and the Saudi oil company Aramco. The system works with 100% renewable gasoline and emerges at a decisive moment, as Europe discusses banning the sale of new combustion engine cars from 2035.
It is important to clarify a point that often causes confusion: it is not exactly a common and isolated gasoline engine, but a hybrid set, named Horse H12 Concept, which combines a high-efficiency combustion engine with the electric part and runs on a renewable synthetic fuel. The project was developed in partnership with the Spanish energy company Repsol and officially presented in February 2026, at automotive sector events in Europe.
What is Horse Powertrain
Contrary to what some sites have published, Horse Powertrain is not a Japanese manufacturer. It is a global propulsion systems company, headquartered in London, equally controlled by the French Renault and the Chinese Geely, with 45% each, in addition to the Saudi Arabian oil company Aramco, with 10%. Created in 2024, it brings together the combustion and hybrid engine operations of the two automakers.
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The company operates 17 factories and five research centers worldwide, employs around 19,000 people, and supplies engines and hybrid systems to brands like Renault, Geely, Volvo, Nissan, Mitsubishi, and Proton. In other words, it is one of the largest global suppliers of combustion and hybridization technology, which lends weight to the bet on keeping the gasoline engine alive, albeit reinvented, in a scenario transitioning to electric vehicles.
How the engine reaches 3.3 liters per 100 km
The Horse H12 Concept is an evolution of the H12 engine, from the same family used in hybrid models like the Nissan Kicks e-Power. The engineering team worked on several fronts to reduce consumption. The engine adopts a high compression ratio of 17 to 1, a redesigned exhaust gas recirculation system, optimized turbo, high-energy ignition, and reduced internal friction, with the help of specific lubricants from Repsol.
The result is a peak thermal efficiency of 44.2%, a figure that represents how much of the fuel’s energy actually turns into movement, and is considered high for engines of this category. Combined with a hybrid gearbox with optimized energy management, the set achieves consumption of less than 3.3 liters per 100 kilometers in the European WLTP cycle, about 40% less than the average of new passenger cars registered in Europe in 2023.
Repsol’s renewable gasoline
The fuel is a central part of the story. The prototype runs on Nexa 95, a 100% renewable gasoline developed by Repsol, produced from waste and renewable raw materials, not conventional petroleum. According to the company, this fuel is fully compatible with the current fleet of gasoline vehicles, without any need for mechanical modifications to the cars.
Repsol began producing this renewable gasoline on an industrial scale in October 2025, at its Tarragona unit in northeastern Spain. For now, the product is available at about 30 service stations in the country. The oil company also developed a renewable version for diesel engines, which promises to reduce net CO2 emissions by up to 90% compared to traditional fossil fuel.
The point that the advertisement does not highlight
Despite the enthusiasm, it is important to maintain a critical sense in the face of the numbers. Renewable and synthetic fuels still cost more than traditional ones, with an average increase of around 10 euro cents per liter, and are produced on a small scale, with presence in only a few dozen stations in a single country. Bringing this solution to millions of vehicles would require a massive expansion of production, with an uncertain impact on the final price.
There is also an underlying debate. Critics argue that betting on renewable fuels may be, in part, an industry strategy to prolong the life of the combustion engine in the face of decarbonization goals, instead of accelerating electrification. Defenders, on the other hand, argue that it is better to reduce emissions now, with the fleet that exists today, than to wait for the complete replacement by electric cars, in an argument of technological neutrality. Both sides have legitimate points, and the reader deserves to know both.
The combustion engine war in Europe
All this movement takes place amid an intense dispute on the European continent. The European Union has approved rules to ban the sale of new gasoline and diesel cars from 2035, but the topic is being revisited, with pressure from automakers, suppliers, and some governments for flexibility, including the possibility of maintaining combustion engines that use only carbon-neutral fuels.
In this context, solutions like the Horse H12 Concept act as a card on the negotiation table. They try to show that the combustion engine can still have a future, as long as it is combined with hybridization and low-carbon fuels, instead of being simply retired. The commercial success of this vision, however, depends on regulation, price, and availability of new fuels on a large scale.
Why this topic matters to the CPG reader
For the oil, gas, and energy audience, this case is especially relevant. It shows how one of the world’s largest oil companies, Aramco, is investing directly in propulsion technology and renewable fuels, a sign that the oil and gas sector is preparing for a future where the fuel molecule may change, even if the combustion engine continues to exist. It is the oil industry seeking to reposition itself in the face of the energy transition.
In Brazil, the topic directly relates to the strength of biofuels, such as ethanol and biodiesel, in which the country is a world reference. The discussion about synthetic gasoline and renewable fuels in Europe helps to understand the strategic value of the Brazilian renewable fuel matrix and raises the question of what role Brazil can play in a global low-carbon fuel market in the coming decades.
The Horse H12 Concept is a concrete demonstration that the combustion engine still has cards to play, especially when combined with hybridization and renewable fuels. At the same time, it’s necessary to look at the numbers with balance: it is a promising prototype, but dependent on fuels that are still expensive and not widely available, amid a regulatory dispute that will define the future of the automotive industry. The next decade will tell if this will be a real alternative to the electric car or just a transitional bridge.
And you, do you believe that the combustion engine powered by renewable fuel has a future, or is the path really total electrification? Would you pay a little more for 100% renewable gasoline? Leave your comment, share your opinion on the end of combustion engines, and share the article with those interested in cars, energy, and the environment.
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