Stellantis And Aramco Join Hands To Achieve Lower CO2 Emission Target

Stellantis NV STLA partnered with Saudi Arabia's Aramco to achieve lower-carbon energy solutions for vehicles. 

The companies jointly conducted tests using surrogate eFuels (provided by Aramco) at STLA's technical centers across Europe.

The companies discovered that 24 engine families in European vehicles produced since 2014 (representing 28 million on-road vehicles) are compatible with advanced drop-in eFuel without any powertrain modification.

The use of low-carbon eFuel can lower carbon dioxide emissions from existing internal combustion vehicles by at least 70% on a lifecycle basis.

Stellantis targets to become a carbon net zero corporation by 2038 and estimates that using low-carbon eFuels in up to 28 million of its European vehicles can reduce up to 400 million tons of CO2 in Europe in 2025-2050.

"Our priority is providing zero-emission mobility for all with a focus on electrification, while our collaboration with Aramco is an important and complementary step in this journey for existing fleets on the road. We are exploring all solutions to reinforce our ambitious strategy of becoming a carbon net zero company by 2038. Drop-in eFuels can have a massive and almost immediate impact on reducing the CO2 emissions of the existing vehicle fleet, offering our customers an easy and economically efficient option to reduce their carbon footprint — one as simple as choosing a different fuel pump at the station, with no additional modification to their vehicles," said Ned Curic, STLA Chief Engineering and Technology Officer.

Last month, Stellantis penned a deal with Controlled Thermal Resources Holdings Inc. (CTR) for a major investment of more than $100 million to advance battery electric vehicle supply chain decarbonization.

Price Action: STLA shares are trading higher by 0.16% at $18.26 on the last check Tuesday.