Repsol & Horse: Ultra-Efficient Hybrid Engine Runs on 100% Renewable Gasoline

February 16, 2026 Priya Shah – Business Editor Business

Repsol and Horse Powertrain are collaborating to develop a new hybrid powertrain designed to run on 100% renewable gasoline, with plans for its first vehicle application in 2026. The partnership aims to create an ultra-efficient hybrid engine that reduces fuel consumption by 40%, according to announcements from both companies.

The powertrain combines a traditional internal combustion engine with an electric motor, but crucially, is engineered to operate optimally with gasoline produced from renewable sources. This approach differs from the industry’s increasing focus on battery-electric vehicles, offering an alternative pathway to reducing carbon emissions in the transportation sector. Renault Group is also pursuing similar hybrid technology, challenging the dominance of electric vehicle development.

Repsol, a Spanish energy company, has been actively investing in the production of renewable fuels, including gasoline derived from biomass and other sustainable feedstocks. This collaboration with Horse Powertrain represents a significant step in integrating these fuels into a commercially viable vehicle powertrain. The development comes as Repsol navigates a complex geopolitical landscape, including potential benefits from a hypothetical regime change in Venezuela, where the company has substantial investments.

The partnership also arrives as Repsol seeks to expand its presence in the US market, particularly regarding exports from Venezuela, a move that requires approval from the US government. According to Yahoo Finance, this push for US-approved Venezuelan exports is a key consideration for shareholders. The new hybrid powertrain technology could potentially offer a bridge to a lower-carbon future while leveraging existing refining infrastructure and gasoline distribution networks.

Horse Powertrain specializes in the development of high-efficiency internal combustion engines. Their expertise in engine design, combined with Repsol’s capabilities in renewable fuel production, is expected to accelerate the development and deployment of this new hybrid technology. The companies have not yet disclosed specific details about the vehicle platform that will initially utilize the powertrain, but have confirmed a 2026 launch target.