Developers recently offered a glimpse into the future, revealing a next-generation engine concept.
Any major technological shift divides the market into winners and those who miscalculate. The story of the young brand Horse Powertrain is a clear example.
Over the past three years, the company has made a rapid leap, becoming one of the world’s leading players in hybrid system production. Recently, it looked even further ahead, unveiling a next-generation engine concept. The unit runs on 100% renewable fuel, consumes 40% less fuel, and can cut carbon dioxide emissions by tons over its lifetime.
Back in 2023, the decision to spin off the joint venture between Geely and Renault into a standalone brand called Horse—focused exclusively on internal combustion engines and hybrids—looked like outright suicide. The European Union was firmly committed to banning new combustion engines by 2035. In the United States, generous federal tax credits were boosting EV sales. Automakers were racing to declare an all-electric future. Everyone seemed to be sprinting toward the charging plug. Who needed a new combustion engine brand?
Three years later, reality has reshuffled the deck. Demand for pure battery-electric vehicles has cooled. Governments are softening timelines, emissions rules are being reconsidered, and some brands are even bringing back thirsty V8 engines. No one is writing off Tesla or battery giants like CATL, but this may be the moment for companies that bet on transitional technologies.
Horse’s wager on hybrids now looks like a brilliant strategic move. As Reuters analysts noted last year, many automakers are scaling back in-house combustion engine development to redirect funds toward electric platforms. Yet hybrids must be sold today. That’s where Horse steps in with ready-made solutions. For many manufacturers, buying a complete hybrid power unit is far cheaper than investing billions into developing one from scratch.
According to CEO Matias Giannini, the company already ranks third globally among engine manufacturers and aims to become number one by 2035. That ambition is backed by serious infrastructure: 17 factories and five R&D centers inherited from its parent companies. Today, its engines power vehicles from Volvo, Nissan, Mitsubishi Motors, as well as Renault and Geely themselves.
To solidify its position, Horse partnered with Spanish energy giant Repsol. The result is the H12 Concept engine—a heavily upgraded version of the 1.2-liter, three-cylinder turbocharged HR12 gasoline engine. Its standout feature is compatibility with Repsol’s 100% renewable fuel, reducing the carbon footprint even before the engine starts.
“This concept proves we can cut emissions today, rather than waiting for some mythical solution of the future,” said Horse COO Patrice Haettel. “Betting everything on a single technology is a dead end. We support a neutral approach—EVs, hybrids, and low-carbon fuels should all coexist.”
Engineers significantly reworked the hardware: compression was raised to 17:1, the turbocharger was optimized, a new exhaust gas recirculation (EGR) system was added, and the hybrid transmission was tuned for maximum efficiency. The result is a brake thermal efficiency of 44.2%—an exceptionally high figure for a gasoline engine. In real-world terms, that translates to fuel consumption of about 71 mpg (3.3 liters per 100 kilometers).
For comparison, the average gasoline-powered car in Europe consumes roughly 43 mpg (about 5.5 L/100 km). That represents a 40% improvement. Environmentally, a midsize crossover equipped with this engine could reduce CO2 emissions by approximately 1.95 tons per year, assuming annual driving of about 7,800 miles.
The secret lies not only in the metal but also in the fuel. Repsol supplies the engine with its Nexa 95 gasoline—a 95-octane fuel produced entirely without fossil crude oil. It is refined from organic waste, including agricultural residues, forestry byproducts, and even used cooking oil from restaurants.
What’s especially notable is that this fuel can be used in any modern gasoline vehicle without modifying the fuel system, while reducing lifecycle carbon emissions by up to 70%. Last fall, Repsol began industrial-scale production at one facility, with plans to open a second plant by the end of this year.
So far, Horse and Repsol have built two H12 test engines. Within weeks, engineers promise to unveil a fully operational vehicle prototype—aimed at proving that it’s far too early to write off the internal combustion engine.