Analysis of Saudi Aramco's Investment in Bicheng Energy and the Trend of Capital Integration in the Energy Industry Chain

Based on collected data, I will conduct a systematic and comprehensive analysis for you.

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Saudi Aramco has built a systematic new energy investment matrix through its corporate venture capital arm

. According to the latest data, Aramco Ventures manages three specialized funds with a total size of [1]:

Fund Name	Size	Investment Focus
Digital/Industrial Fund	US$500 million	Digitalization, industrial solutions
Prosperity7 Fund	US$500 million	Diversified venture capital
Energy Transition Fund	US$1.5 billion	Clean energy technologies

To date, Saudi Aramco’s global investment portfolio has reached

, including 75 active portfolio companies and 34 exited projects[1]. Since 2025, Aramco Ventures has announced six strategic investments covering cutting-edge fields such as AI supply chain optimization (Arkestro), direct air capture technology (Ucaneo), and ammonia power systems (Amogy)[1].

Saudi Aramco has established

in China and launched a venture capital fund of approximately , focusing on investments in Chinese startups[2]. The investment in Bicheng Energy (jointly with Eurazeo, LONGi Green Energy, etc.) is a continuation of this strategy, reflecting high attention to China’s clean energy track.

The lead investor lineup for Bicheng Energy’s Series B financing is highly meaningful:

• Aramco Ventures
  : Represents energy transition capital from an oil giant
• Eurazeo
  : A well-known European investment group
• LONGi Green Energy
  : Global leader in photovoltaic industry
• Yiyan Capital
  : Professional industrial capital

This combined investment model of “Oil Capital + European Capital + Industry Leader” clearly demonstrates the strategic intent of

.

Judging from Saudi Aramco’s investment portfolio, its new energy strategy presents

:

• Green Power
  : Solar and wind energy projects (targeting 12GW of renewable energy capacity by 2030)[3]
• Hydrogen Energy
  : Blue hydrogen and ammonia production (targeting annual output of 11 million tons of blue ammonia by 2030)[4]
• CCUS
  : Carbon Capture, Utilization and Storage technologies
• Cutting-edge Technologies
  : Direct air capture, energy storage, AI optimization

Notably, against the backdrop of “slowing low-carbon investment” in the global oil and gas industry, Saudi Aramco’s investment strategy presents

:

Company	Strategic Characteristics	2025 Developments
Saudi Aramco	Diversified layout, steady advancement	Continued investment in clean energy, launch of RMB 55 billion China-focused fund[2]
BP	Pullback after aggressive transformation	Cut renewable energy spending from US$5 billion to US$1.5-2 billion[5]
Shell	Retreat from offshore wind power	Exit new offshore wind power investments[5]
TotalEnergies	Focus on power business	Target to increase power business share from 12.5% to 20% by 2030[6]

Saudi Aramco has chosen a path of

– while maintaining cash flow support from its core oil and gas business, it lays out future technologies through venture capital investments.

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On January 8, 2026, the State-owned Assets Supervision and Administration Commission of the State Council (SASAC) approved the

[7]. This restructuring will form:

• Full Industrial Chain Closed Loop
  : “Crude oil import - refining and chemical production - aviation fuel transportation - airport refueling”
• Scale Effect
  : Benchmarked against international integrated energy giants such as Shell and BP[8]
• Enhanced Competitiveness
  : Upgrading from single-channel competition to comprehensive competition based on full-industry-chain efficiency and cost

As a global leader in the photovoltaic industry, LONGi Green Energy’s participation in the investment in Bicheng Energy reflects its

:

• In November 2025, LONGi Green Energy announced the
  acquisition of Jingkong Energy
  to enter the energy storage track[9]
• Participated in the polysilicon storage consortium to promote capacity integration[10]
• Actively responded to the “anti-involution” policy in the photovoltaic industry to promote the orderly exit of backward production capacity

CATL plans to participate in the investment of

(target size of US$1.5 billion) through its overseas subsidiary, focusing on upstream and downstream investments in the carbon neutrality field[11]. The industrial fund participated in by CSG Energy Storage has a subscribed scale of , with investment directions covering new energy storage and strategic emerging projects in the energy industry chain[11].

Analysis of Driving Factors for Industrial Chain Integration
├── Policy Guidance Level
│   ├── Ministry of Industry and Information Technology promotes the "anti-involution" policy in the photovoltaic industry
│   ├── SASAC promotes specialized integration of central state-owned enterprises
│   └── Market-oriented reform of grid-connected electricity prices for new energy
├── Market-driven Level
│   ├── Overcapacity leads to in-depth industry reshuffle
│   ├── Escalating international trade frictions (US high tariffs on Southeast Asian photovoltaic products)
│   └── Consumption of refined oil products faces a historical inflection point
└── Industrial Development Level
    ├── Accelerated technological iteration (BC batteries, perovskite tandem cells)
    ├── Electricity market reform requires higher absorption capacity
    └── High-proportion new energy grid connection spurs demand for "photovoltaic-storage integration"

Integration Model	Representative Case	Core Logic
Horizontal Integration	Restructuring of Sinopec and China National Aviation Fuel	Merger of similar businesses to increase market concentration
Vertical Integration	LONGi Green Energy’s acquisition of Jingkong Energy	Synergy of upstream and downstream industrial chains, covering “photovoltaic + energy storage”
Cross Investment	Bicheng Energy’s Series B Financing	Joint investment by oil capital, industrial capital and financial capital
Platform-based Integration	Polysilicon Storage Consortium	Leading enterprises establish a platform to stabilize prices and production capacity

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Traditional Competition Dimensions	New Competition Dimensions
Single-point cost advantage	Full-industry-chain efficiency and cost
Single product performance	System solution capability
Market share competition	Niche control and discourse power
Domestic market layout	Global supply chain integration

As analyzed by experts, after the restructuring of Sinopec and China National Aviation Fuel, the competition will upgrade from “single-channel competition to comprehensive competition based on full-industry-chain efficiency and cost”[8].

Industrial chain integration is driving

of the industry:

1. Photovoltaic Industry
   :
   • In 2025, the coexistence of “cross-border layout” and “batch exit” emerged[12]
   • The top five module leaders collectively entered the energy storage track
   • The “retreat drama” of enterprises that entered the photovoltaic industry cross-border continues to unfold

2. Aviation Fuel Market
   :
   • Market concentration increased significantly after the restructuring
   • All parties in the industrial chain re-examine their positioning
   • Small and medium-sized refining and chemical enterprises face short-term adaptation pressure[8]

3. Central State-owned Enterprises
   :
   • Specialized integration has been accurately implemented, focusing on strengthening and supplementing the industrial chain[13]
   • Over 300 listed companies established industrial M&A funds
     in 2025[11]

Pre-integration Structure                    Post-integration Structure
┌─────────────┐              ┌─────────────┐
│ Upstream    │              │ Super       │
│ Suppliers   │              │ Integrated  │
│  ←--------→ │              │ Holding     │
│ Middle      │    ===>       │ Group       │
│ Channels    │              │ ↑ ↓         │
│  ←--------→ │              │ Specialized │
│ Downstream  │              │ Service     │
│ Users       │              │ Providers   │
└─────────────┘              └─────────────┘

Taking the aviation fuel market as an example: the “stable relationship”[8] formed between upstream “Big Three Oil Companies”, private refining and chemical enterprises, China National Aviation Fuel (super channel), and airlines is being broken and restructured.

The impact of industrial chain integration has transcended the domestic market and affected

:

1. Technology Export + Localized Production
   : Facing trade barriers in Europe and the US, leading enterprises are shifting from “manufacturing going global to system services”[12]
2. Supply Chain Security Becomes a Core Concern
   : Geopolitical fluctuations drive enterprises to build more resilient supply chains
3. Enhanced Pricing Discourse Power
   : Integrated giants will gain stronger global resource allocation capabilities

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Entity	Strategic Recommendations
Energy Enterprises	Actively participate in industrial chain integration to build full-chain competitiveness
Photovoltaic/New Energy Enterprises	Seize the policy window of “anti-involution” to promote capacity optimization and integration
Investment Institutions	Focus on industrial fund models and participate in high-quality asset allocation
Manufacturing Enterprises	Accelerate technological iteration to avoid marginalization

1. Policy Implementation Risk
   : The effect of industrial chain integration depends on the intensity of policy implementation
2. Market Monopoly Risk
   : The increase in concentration requires prevention of abuse of market dominant position[8]
3. Integration Synergy Risk
   : Restructuring of central state-owned enterprises involves challenges such as management integration and cultural integration
4. Technical Route Risk
   : The commercialization process of new technologies such as BC and perovskite is uncertain

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Saudi Aramco’s investment in Bicheng Energy is a concrete manifestation of its

, reflecting the long-term layout of the world’s largest oil company in the clean energy track through venture capital investment. The uniqueness of this investment lies in:

1. Capital Structure Innovation
   : Combined model of oil capital, industry leader and European capital
2. Industrial Chain Synergy
   : LONGi Green Energy’s participation highlights the trend of upstream and downstream integration
3. Global Vision
   : Saudi Aramco’s strategic intent to deeply cultivate the Chinese market is obvious

Industrial chain capital integration is fundamentally reshaping the competitive landscape of the energy industry:

• Transformation of Competition Logic
  : From single-point competition to full-industry-chain competition
• Changes in Market Structure
  : Increased concentration and strengthened head effect
• Redistribution of Discourse Power
  : Integrated giants dominate the industrial chain

Looking forward, the energy industry will present a competitive landscape of

. Enterprises that can effectively integrate industrial chain resources and build full-chain competitiveness will occupy an advantageous position in the next round of competition.

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[1] OGN News - “Aramco’s venture capital boost local entrepreneurial ecosystem, units” (https://ognnews.com/Article/47685/Aramco’s_venture_capital_boost_local_entrepreneurial_ecosystem,_units)

[2] Aramco China - “Aramco vows to expand investment in China, eyeing three strategic sectors” (https://china.aramco.com/en/news-media/china-news/2025/aramco-vows-to-expand-investment-in-china-eyeing-three-strategic-sectors)

[3] OGN News - “ARAMCO POWERS AHEAD WITH UPSTREAM, DOWNSTREAM & ENERGY TRANSITION PLANS” (https://ognnews.com/Article/47681/ARAMCO_POWERS_AHEAD_WITH_UPSTREAM,_DOWNSTREAM__ENERGY_TRANSITION_PLANS)

[4] Arab News - “Beyond the barrel: How Aramco is reinventing energy production for a new era” (https://www.arabnews.com/node/2600971/business-economy)

[5] Eastmoney - “IEA Delays Peak Oil and Gas Demand by 20 Years, Oil and Gas Giants Collective ‘Backtrack’” (https://caifuhao.eastmoney.com/news/20260112090131367426450)

[6] Securities Times - “International Oil Companies Hit the Brakes on Low-carbon Investment: What Insights?” (https://www.stcn.com/article/detail/3548169.html)

[7] Securities Times - “Two Major Central Energy Enterprises Restructure, All Parties in the Aviation Fuel Chain Seek New Positions” (https://www.stcn.com/article/detail/3580375.html)

[8] Sina Finance - “Two Central Enterprises Restructure to Create an Aviation Fuel ‘Giant’ and Reshape the Industrial Pattern” (https://finance.sina.com.cn/roll/2026-01-14/doc-inhhfvyr6668165.shtml)

[9] Pacific Securities - “Event Review of LONGi Green Energy in 2025: BC Volume Growth Helps Reduce Losses YoY and QoQ in Q3, Acquisition of Jingkong Energy to Enter Energy Storage”

[10] Shanghai Securities News - “New Progress in Polysilicon Storage” (2025-11-06)

[11] Xinhua Finance - “Over 300 Listed Companies Established Industrial M&A Funds in 2025” (http://jjckb.xinhuanet.com/20260115/574f2cd7400d42559fc42a7d06bed6fb/c.html)

[12] CNFOl - “2025 Year-end Review of China’s Photovoltaic Industry” (http://mp.cnfol.com/56191/article/1767771544-142201925.html)

[13] Eastmoney - “Restructuring of Central and State-owned Enterprises Accelerates, Upstream and Downstream Industrial Synergy Strengthened” (https://wap.eastmoney.com/a/202601103614651428.html)

[14] IEA - “World Energy Investment 2025” (https://www.iea.org/reports/world-energy-investment-2025/middle-east)

[15] Rystad Energy - “Middle East oil and gas: Six strategic themes from 2025” (https://www.rystadenergy.com/insights/middle-east-oil-and-gas-six-strategic-themes-from-2025-and-what-to-watch-in-2026)