Hexagon Agility renews master service agreement with UPS and receives new fuel system orders for UPS' heavy duty renewable natural gas trucks

16 May 2024: Hexagon Agility, a business of Hexagon Composites, signed a 3-year extension of its master services agreement with UPS in February 2024 to supply renewable natural gas (RNG) fuel systems for medium- and heavy-duty trucks. UPS is the world's premier package delivery company and a leading provider of global supply chain management solutions.

Under the extended agreement, Hexagon Agility has received new orders totaling USD 57.7 million (approx. NOK 620 million) for delivery of RNG fuel systems for heavy-duty trucks. The orders include trucks utilizing the new 15-liter (X15N) natural gas engine.

"In the past decade Hexagon Agility has supported the deployment of over 100,000 near-zero emission vehicles globally," said Eric Bippus, EVP of Sales and System Development at Hexagon Agility. "UPS has been a pioneer in sustainable transportation. Once again, they are taking the lead and are among the first companies enhancing their fleet with the game-changing X15N engine and our fuel systems."

RNG in heavy-duty transport results in significant reductions of greenhouse gas (GHG) emissions. In 2023, 6.96 million metric tons of carbon dioxide equivalents were displaced by RNG in the U.S.* This is equal to removing 17 billion miles driven by the average passenger car.

In North America, RNG is supported by abundant natural gas pipeline infrastructure which allows for its immediate use today, and for decades to come. Hexagon Agility is enabling adoption of RNG to cost effectively combat climate change.

About the market

Never before have there been so many natural gas trucks on the road. According to The Transport Project there are more than 175,000 natural gas vehicles on US roads today.

In 2023, RNG accounted for 79% of all on-road fuel used in natural gas vehicles in the United States. Meanwhile, fuel providers and RNG producers are rapidly expanding output and availability of RNG at the pump, adding to the 1,500 natural gas fueling stations available across North America today.

Timing

Deliveries of the new orders are expected to be completed by the end of the fourth quarter of 2024. The bulk of the orders will be completed in the second half of 2024.

For more information:

Karen Romer, SVP Communications, Hexagon Composites ASA
Telephone: [phone] | [e-mail] 

Ingrid Aarsnes, VP Investor Relations and ESG, Hexagon Composites ASA
Telephone: [phone] | [e-mail]

*Natural Gas Vehicles for America (NGVAmerica) and Coalition for Renewable Natural Gas (RNG Coalition)

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 hexagonagility.com and follow @HexagonAgility on X 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 hexagongroup.com and follow @HexagonASA on X and LinkedIn.

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