Hexagon Agility, a subsidiary of Hexagon Composites, has received orders from a major heavy-duty fleet in North America for renewable natural gas (RNG) fuel systems. The orders represent an estimated value of USD 27.1 million (approx. NOK 288 million).
"We commend our customer for its ongoing commitment to further its emission reduction targets through the use of renewable natural gas," said Seung Baik, President of Hexagon Agility. "In 2021, 64% of all on-road fuel used in the United States for natural gas vehicles was RNG, delivering carbon negative results nationwide. With the recent USD 0.50 per gallon federal Alternative Fuel Tax Credit extension, our government has affirmed its commitment to supporting RNG for years to come."
About the market
RNG results in the greatest reduction of greenhouse gas emissions of any clean energy solution available today in the transport sector. In addition, RNG is supported by vast infrastructure in North America, allowing for immediate deployment of this cost effective and commercially available technology. Research shows that RNG derived from agricultural waste can offer more than 200% improvement in well-to-wheel emission reductions compared to diesel, and is the only carbon-negative fuel available.
In the U.S., the Inflation Reduction Act signed into law in August aims to bring down costs and boost energy supply, cutting inflation and substantially reducing greenhouse gas emissions. Of the total USD 739 billion package, USD 369 billion is earmarked for "Energy Security and Climate Change" which would put the U.S. on a path to a roughly 40% emissions reduction by 2030. Tens of billions of dollars will go toward supporting renewable energy development, including tax credits and grants for clean fuels and clean commercial vehicles, including heavy-duty vehicles such as transit buses and garbage trucks.
Timing
Deliveries of the fuel systems are scheduled to start Q1 2023.
For more information:
Karen Romer, SVP Communications, Hexagon Composites ASA
Telephone: +47 950 74 950 | karen.romer@hexagongroup.com
Ingrid Aarsnes, VP Investor Relations and ESG, Hexagon Composites ASA
Telephone: +47 950 38 364 | ingrid.aarsnes@hexagongroup.com
About Hexagon Agility
Hexagon Agility, a business of Hexagon Composites, is a leading global provider of clean fuel solutions for commercial vehicles and gas transportation solutions. Its product offerings include (renewable) natural gas storage and distribution systems, Type 4 composite natural gas cylinders, propane, and (renewable) natural gas fuel systems. These products transport clean gaseous fuels and enable vehicles to reduce emissions while saving operating costs. Learn more at www.hexagonagility.com and follow @HexagonAgility on Twitter and LinkedIn.
About Hexagon Composites ASA
Hexagon delivers safe and innovative solutions for a cleaner energy future. Our solutions enable storage, transportation, and conversion to clean energy in a wide range of mobility, industrial and consumer applications. Learn more at www.hexagongroup.com and follow @HexagonASA on Twitter and LinkedIn.
