Hexagon Composites ASA Expands as US Natural Gas Truck Market Prepares to Grow Threefold; To Participate in One of the Largest Small-Cap Conferences in the US

Mar 06, 2024

Oslo, Norway (6 March 2024) – Hexagon Composites ASA (“Hexagon Composites” or the “Company) (Oslo: HEX.OL), a world leader in Type 4 composite technology and vertically integrated fuel solutions with key competences in the assembly and installation of complete clean-fuel-systems, today announced the company, represented by David Bandele, Chief Financial Officer, will participate in Roth MKM’s upcoming 36th Annual Investor Conference, being held 17-19 March in California, USA. One of the nation’s largest conferences for small-cap companies. Conference attendees are encouraged to request a meeting through ROTH’s online conference platform or by contacting their ROTH representative.

Hexagon’s world leading composite cylinder technology enables the safe delivery of clean gaseous energy to homes and industries and decarbonizes transportation on land and at sea.

Hexagon Agility, a fully owned subsidiary, is the market leader in North America, where it has spearheaded the use of compressed natural gas in commercial vehicles. Today, Hexagon Agility offers the broadest range of clean fuel solutions for commercial vehicles and gaseous energy transportation, enabling fleets to make the switch to clean fuels.

Hexagon addressable market expected to expand three-fold from 2024

“The launch of the Cummins X15N, 15-liter engine will triple the addressable market for natural gas trucks in the heavy-duty sector over the next few years,” says David Bandele, CFO Hexagon Composites. Bandele will explain how this is a game-changer for the clean fuels industry, enabling a powerhouse solution for Class 8 fleets traveling locally and cross country. Powered by RNG/CNG, the X15N is capable of meeting stringent EPA (Environmental Protection Agency) and CARB regulations in 2024 and 2027. The new engine matches the power and torque of diesel engines, allowing natural gas to go head-to-head with diesel in the heavy-duty sector.

Hexagon expects demand for the new engine will ramp-up gradually during 2024 and the Company’s addressable market for natural gas long-haul trucks will increase at pace with the segment when this new engine is widely available. Hexagon Agility’s current capacity expansion program will substantially increase cylinder volumes for heavy-duty truck applications. Production start for the new line is set for the first quarter of 2025, to coincide with the increased market demand.

About the North America heavy-duty truck market

Approximately 330,000 heavy duty trucks are sold annually in the North American market*. 100,000 of these trucks make up the addressable market for renewable natural gas (RNG/CNG) solutions currently. The current 9- and 12- liter natural gas engines on the market are a good match for the usage patterns of these trucks – vocational and day cab regional-haul applications, mainly. This is supported by a strong RNG/CNG filling station network of 1500+ stations across all key transport corridors in North America.

The introduction of the Cummins X15N will unlock the long-haul market segment, adding 230,000 heavy duty trucks to the addressable RNG/CNG market annually.

In addition to the ROTH Conference, Hexagon will also participate in severaUS industry tradeshows, including:

  • RNG (Renewable Natural Gas) Forum: 9-11 April in Quebec, Canada
  • Truck World Ontario: 18 April in Mississauga, Ontario, Canada
  • ACT (Advanced Clean Transportation) Expo: 20-22 May in Las Vegas, NV

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 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.

*Source: ACT Research