Aramco and Mazda to develop more efficient engines

Mazda and Saudi Aramco have teamed up to produce more efficient egnines. (Reuters)
Updated 08 August 2018

Aramco and Mazda to develop more efficient engines

  • Pair aim to reduce CO2 emissions
  • Aim to complete work by end of fiscal year 2020

LONDON: Saudi Aramco has teamed up with Mazda to develop more efficient engines as they seek to reduce their environmental impact.

The pair will work with the National Institute of Advanced Industrial Science and Technology (AIST) to boost engine efficiency and reduce carbon dioxide emissions, Saudi Aramco said in a statement.

“This cooperative research with Mazda and AIST underscores our shared commitment to delivering advanced technology solutions that make a significant impact on real-world issues,” said Aramco Chief Technology Officer Ahmad Al-Khowaiter.

The internal combustion engine is facing increased competition from electric vehicles as automakers come under more pressure to reduce their environmental impact by making cars which burn less fuel and produce less harmful greenhouse gases.

National oil companies are also becoming part of that process as they seek to develop more efficient fuels.

Al-Khowaiter said that new engine technologies continue to prove that improving the internal combustion engine remains the most cost-effective and timely means to reduce greenhouse gas emissions from the transport sector, with the potential to yield “dramatic” results.

The partnership will see Aramco provide low carbon-content new fuels while Mazda will focus on building a high-efficiency advanced prototype engine.

Saudi Aramco has devoted years of intensive investment to co-developing fuels and engine research, as part of its global Transport Technology program.
Mazda’s advanced prototype engine is based on a Compression Ignition engine with ultra-lean burn combustion.

Bank lending for ‘real economy’ key to boost China growth: central bank official

Updated 39 min 7 sec ago

Bank lending for ‘real economy’ key to boost China growth: central bank official

  • ‘The central bank doesn’t wish to use administrative methods to require banks (to lend)’
  • Quantitative easing is neither necessary nor possible at the moment

SHANGHAI: China should encourage its banks to support smaller, private firms in the real economy, rather than forced lending or policies such as quantitative easing, a state newspaper quoted a central bank official as saying on Saturday.
“The central bank doesn’t wish to use administrative methods to require banks (to lend),” Sun Guofeng, head of the monetary policy department at the People’s Bank of China (PBOC), told the Financial News, a bank publication.
“It wants to establish positive encouragement mechanisms though monetary policy tools to encourage banks to actively increase their support for the real economy, especially toward smaller and privately-owned firms,” Sun said.
The comments come a month after Sun wrote a commentary in which he argued that problems with timely capital replenishment, bank liquidity gaps and poor rate “transmission” are three major constraints on banks’ supply of credit.
In the interview with the Financial News, Sun said monetary policy transmission had “noticeably improved,” showing that steps to enhance transmission mechanisms had been effective.
He said the central bank would increase the strength of innovation in monetary policy tools.
Perpetual bond issuance “is only one breakthrough” in reducing capital constraints on banks, Sun said, adding that “other methods” could be used in the future.
He said that quantitative easing was neither necessary nor possible at the moment, noting that under China’s financial system the significance of the central bank buying Chinese treasury bonds on the secondary market is limited, and that the PBOC is barred from buying the instruments on the primary market.
China’s banks made the most new loans on record in January following a series of moves to boost lending as authorities try to prevent a sharp slowdown in the world’s second-largest economy.