Hexagon Purus signs landmark long-term agreement with Hino Trucks for zero emission heavy-duty trucks in the U.S.
March 15, 2023 - Stock Exchange Release
(Oslo, Norway, 15 March 2023) With reference to the stock exchange release on 1 March 2023, Hexagon Purus, a world leading manufacturer of zero emission mobility and infrastructure solutions, has signed a distribution agreement with Hino Motors Sales U.S.A., Inc. (“Hino”) where Hexagon Purus will produce complete battery electric heavy duty trucks for the U.S. market, distributed exclusively through select qualifying dealers in Hino’s network. The vehicles will be based on Hino’s XL 4x2 truck chassis and upfitted with Hexagon Purus’ proprietary zero-emission technology, including battery systems, auxiliary modules, power modules and the vehicle-level software. The agreement foresees the delivery of up to 10,000 trucks by 2030. These trucks will be compliant with, amongst other, the Advanced Clean Truck regulation in California, which requires all truck manufacturers and distributors to have an incrementally higher zero-emission vehicle content when selling in California from 2024 onwards. The potential total value over the course of this agreement could reach approximately USD 2.0 billion (approximately NOK 20 billion).
Hino will also be responsible for after-sales service during the lifetime of this exclusive distribution agreement. Serial production of these electric heavy-duty trucks will commence during the last part of 2024.
This expanded agreement replaces the already announced (11 February 2022) cooperation between Hexagon Purus and Hino to supply battery packs for multiple Hino truck platforms planned for serial production from 2024.
Driving Energy Transformation
“We are very proud and honored to take the co-operation with Hino to the next level by serially producing battery electric heavy-duty trucks for distribution in the U.S. through select qualifying dealers in Hino’s network. This is a strong validation of our technology and the capabilities as a provider of complete zero-emission mobility solutions. With this agreement, we continue to improve the line-of-sight for our 2025 revenue target of NOK 4-5 billion”, says Morten Holum, CEO of Hexagon Purus.
“Hino has been an important zero-emission technology development partner for Hexagon Purus in North America for several years, and as a development partner in Hino’s “Project Z” Battery Electric Vehicle program, we are thrilled to continue building on that strong relationship in the years to come”, says Todd Sloan, EVP of Hexagon Purus. “Approximately 12% of commercial vehicles operating in California fall within the heavy-duty trucks classification, however, they account for almost half of California’s NOx emissions in the medium- and heavy-duty space. Targeting the disproportionate emissions of specifically these trucks through increasing adoption of zero-emission vehicles is crucial to reduce emissions in California and across the whole of the U.S.”.
“We are happy to get the exclusive right to distribute Hexagon Purus’ zero emission trucks through select qualifying dealers in our network of dealerships across the U.S”, says Glenn Ellis, President, Hino Trucks – A Toyota Group Company. “Recent proposals and regulations that address the need for further reductions in emissions in the transportation sector in the U.S. will drive the demand for several zero-emissions classes of commercial vehicles in the many years to come”.
About the market
To reach the 1.5°C ambition set by the Paris agreement back in 2015 the transportation sector is required to reduce emissions by 75% until 2050. In the U.S., both the Environmental Protection Act (EPA) and California Air Resources Board (CARB) have introduced proposals and regulations that addresses the need for further reductions in emissions in the transportation sector. In California, CARB has introduced a regulation for truck manufacturers (Advanced Clean Truck standard), and more recently, proposed a new regulation for fleet owners (Advanced Clean Fleet standard). Both regulations aim at reducing emissions and accelerate the adoption of zero-emissions vehicles (ZEVs) in the transportation sector in California. As part of both the Advanced Clean Truck (ACT) and the proposed Advanced Clean Fleet (ACF) regulations, the truck manufactures and fleet owners are required to have an incrementally higher ZEV content when selling or operating a fleet of trucks in California from 2024 onwards. The ACT regulation has already been adopted by five other states in the U.S. (Massachusetts, New Jersey, New York, Oregon, and Washington) and two more states are in the public process required to adopt (Colorado and Main).
The ACT requires amongst other that 5% of all new class 7 and 8 trucks sold in 2024 in California must be ZEV while new additions to fleets of class 7 and 8 trucks operating to and from intermodal seaports and railyards are required to be ZEV from 2024. The ACT regulation also requires 100% of truck manufacturers’ sales in 2040 to come from ZEVs, putting an effective end to sale of internal combustion engine trucks in California and incentivizes investments into infrastructure and supply chain.
There are approximately 1.8 million commercial trucks operating in California daily across a various set of classes including amongst other 219,000 class 7 and 8 trucks. According to CARB, the combined effect from the ACT and ACF regulations will lead to approximately 0.5 million ZEVs on the road by 2035 in California, increasing to 1.6 million in 2050.
Mathias Meidell, Investor Relations Director, Hexagon Purus
Telephone: +47 909 82 242 | firstname.lastname@example.org
Hino Trucks manufactures, sells, and services a lineup of Class 4-8 commercial trucks in the United States. Hino Trucks is the premier heavy and medium duty nameplate in the United States with a product lineup that offers fully connected vehicles with low total cost of ownership, unmatched reliability and maneuverability and the most comprehensive bundle of standard features in the market. Headquartered in Novi, Michigan, Hino has a network of around 200 dealers nationwide committed to achieving excellence in the ultimate ownership experience.
Learn more about Hino Trucks at http://www.hino.com or follow us on Facebook, LinkedIn, Twitter and YouTube.
About Hexagon Purus
Hexagon Purus enables zero emission mobility for a cleaner energy future. The company is a world leading provider of hydrogen Type 4 high-pressure cylinders and systems, battery systems and vehicle integration solutions for fuel cell electric and battery electric vehicles. Hexagon Purus' products are used in a variety of applications including light, medium and heavy-duty vehicles, buses, ground storage, distribution, refueling, maritime, rail and aerospace.
Learn more at www.hexagonpurus.com and follow @HexagonPurus on Twitter and LinkedIn
This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act