Hexagon Purus reports significant customer, contract growth for 2020

E-mobility company Hexagon Purus (Ålesund, Norway) has detailed several significant accomplishments in 2020 per its annual report. Of notable importance, the company grew its customer base and mobility segment contracts — including Hino Trucks (heavy-duty trucks; Novi, Mich., U.S.), New Flyer (transit; Manitoba, Canada), Everfuel (distribution; Denmark), and Stadler (rail; Bussnang, Switzerland). This, in turn, laid the groundwork for entering China’s clean mobility market through a joint venture with CIMC Enric (China). The end of the year saw Hexagon Purus listed on Euronext Growth exchange (Oslo, Norway) and up to NOK 750 million (USD $86.7 million) gross proceeds raises in a private placement, with an expectation to grow revenue by at least 50% in 2021.

Becoming a spin-off company from Hexagon Composites ASA (Hexagon, Alesund, Norway) in late 2020, Hexagon Purus’ activities have been focused on obtaining sufficient capital to accelerate its developments and fund its future growth for high-pressure composite hydrogen storage cylinders, fuel storage and distribution systems and electric drivetrain solutions. The company has pursued these objectives via several awarded contracts.

For example, July 2020 saw the company awarded a USD $5.2 million contract for the design, development, qualification and production of high-performance Type IV composite pressure vessels to a new major aerospace customer for its launch vehicle. Other contracts include the company’s selection in August by a key Northeast Asian OEM for the serial supply of composite cylinders for its current zero-emission fuel cell electric (FEC) SUV, and a purchase order from Hino Trucks, a Toyota Motors company, to provide battery packs and drivetrain integration for three trucks as part of Hino’s “Project Z” BEV program. This led to an additional contract to supply hydrogen systems to Toyota Motor North America (TMNA) for its newest prototype hydrogen-powered, heavy-duty FEC powertrains. This was the third heavy-duty truck project in three years that Hexagon Purus collaborated on with Toyota.

During the same year, Hexagon Purus also signed a multiyear master frame agreement with Everfuel to deliver multiple units of newly designed 45-foot, hydrogen distribution systems with an estimated sales value of EUR  €14 million. The systems will be used to transport hydrogen to refueling stations serving hydrogen FEC passenger car fleets (e.g., taxis), trucks and buses. At signing, Everfuel ordered its first six distribution units under the new frame agreement. The new system will have a nominal payload capacity of 958 kilograms of compressed hydrogen at 300 bar.

Similarly, Hexagon Purus signed a contract with a major U.S. hydrogen fuel supplier and refueling station operator to provide multiple X-Store all-composites, 20-foot transport modules for the distribution of high-pressure hydrogen gas with an estimated sales value of USD $4.8 million.

In accordance with its exponential growth, Hexagon Purus says it is entering 2021-2022 with several objectives. In addition to preparing its North American and European facilities for increased volume, the company hopes to diversify its customer base and ramp up its CIMC Enric joint venture in China, aiming at 100,000 cylinders per year, starting with high-pressure Type III cylinder production in 2021. The company also hopes to continue building its organizational capabilities and resources, and improve cost efficiency and manufacturing productivity with increased automation and optimized value streams.

View the full report here.