Hexagon Purus, Hexagon Agility receive new orders for distribution modules

In April 2022 Hexagon Composites (Ålesund, Norway) subsidiaries Hexagon Purus and Hexagon Agility have announced new orders for distribution modules for hydrogen and (renewable) natural gas (RNG) and compressed natural gas (CNG) applications.

Hexagon Purus, through its wholly owned subsidiary, Wystrach GmbH (Weeze, Germany), has received a follow-on order worth approximately €1.5 million (approx. NOK 14 million) to deliver hydrogen distribution systems to a leading global industrial gas company. This order is in conjunction with the announcement on Feb 4, 2022, of a separate order with a value of approximately €5.7 million (approx. NOK 58 million). Wystrach’s hydrogen distribution systems with Hexagon Purus’ Type IV composite cylinders will be used to deliver hydrogen for industrial and mobility applications in the Netherlands.

“This latest order is testament to our technology and confirms our strong offering of high-pressure hydrogen distribution systems and positioning with global industrial gas companies,” Matthias Kötter, head of Wystrach sales, Hexagon Purus, says. “We are happy to continue to support our customer in their efforts to increase hydrogen distribution in Europe.”

Delivery of the hydrogen systems is scheduled for Q1 2023.

Similarly, Hexagon Agility signed in March 2021 a multi-year agreement with Certarus Ltd. (Alberta, Canada), a North American full-service provider of bulk gas transport, to supply distribution modules for RNG and CNG applications.

Hexagon Agility has received an order for Mobile Pipeline TITAN4 and TITAN 53 modules under this agreement. The order represents an estimated total value of $17.6 million (approx. NOK 162 million). The new modules will be used primarily to deliver RNG to the market, support helium service and provide critical utility support to regions lacking gas supply or infrastructure. Module deliveries are expected to commence in the second quarter of 2022.

“There is an increasing need for mobile energy distribution as the demand for low carbon fuels outpaces the ability of existing pipeline infrastructure. Remote operations want access to cleaner-burning natural gas, local utility providers need extra capacity to meet peak demand periods, and producers of low and zero-emission fuels like hydrogen, RNG, and helium need cost-effective and reliable market access solutions,” said Curtis Philippon, CEO of Certarus. “Our long-term partnership with Hexagon Agility has helped us to build North America’s largest mobile energy distribution network and we are very excited to add our first Titan 53 units to our growing fleet.

Hexagon Agility’s TITAN 53 modules are certified for transport of a variety of gas, including CNG, RNG, helium and hydrogen. TITAN 53 modules with helium capacity of 360,000 cubic feet are said to enable operators like Certarus to significantly reduce the number of trips required to serve customers, reducing expenditures and emissions. The company says more than 1,800 Mobile Pipeline modules have now been deployed around the world.

“We appreciate our long-standing partnership with Certarus and are excited to see them expand their world-class service with our TITAN 53 modules. We’re proud of to the work we are doing together” Seung Baik, president of Hexagon Agility, says. “This order represents our continued diversification of Mobile Pipeline into new market segments and our commitment to driving energy transformation.”

As previously disclosed, Hexagon Agility also signed a master services agreement in Oct. 2019 with UPS to supply CNG and RNG fuel systems for medium- and heavy-duty trucks. Deliveries of the new orders started in the first quarter of 2022.

Under this agreement, Hexagon Agility has received $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 $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 $32.1 million (approx. NOK 299 million) of medium-duty step van fuel systems.

“RNG is the only alternative fuel available today that produces carbon-negative results for fleets,” Baik notes. “We commend UPS for its ongoing commitment to reach carbon neutrality by 2050 and further its greenhouse gas [GHG] reductions using our CNG fuel systems, fully interchangeable with RNG.”

According to gas company NGVAmerica (Washington, D.C., U.S.), 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.