27 April 2022: As previously disclosed, Hexagon Agility, a business of Hexagon Composites, signed a master services agreement in October 2019 with UPS, the world’s premier package delivery company and a leading provider of global supply chain management solutions, to supply compressed natural gas (CNG) and renewable natural gas (RNG) fuel systems for medium- and heavy-duty trucks.
Under this agreement, Hexagon Agility has received USD 21.9 million (approx. NOK 204 million) in new orders in 2022 for delivery of heavy-duty and yard-hauler products. This is in addition to USD 3.7 million (approx. NOK 34 million) of previously announced orders from 2021 expected to be completed in 2022.
UPS has also committed under the agreement to purchase USD 32.1 million (approx. NOK 299 million) of medium-duty step van fuel systems.
Start Now – RNG is How
"RNG is the only alternative fuel available today that produces carbon-negative results for fleets,” said Seung Baik, President of Hexagon Agility. “We commend UPS for its ongoing commitment to reach carbon neutrality by 2050 and further its GHG reductions using our CNG fuel systems, fully interchangeable with RNG.”
According to NGVAmerica, when fueling with RNG, GHG emissions can be reduced up to 382%. In 2020, 53% of all on-road fuel used in natural gas vehicles was RNG. NGVAmerica anticipates the RNG usage volume to be even higher in 2021. Companies like UPS are the key contributors and continue to drive energy transformation.
Timing
Deliveries of the new orders started in the first quarter of 2022.
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 natural gas storage and delivery systems, Type 4 composite natural gas cylinders, propane, and 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.
This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act
