Hexagon Purus revenue report, key contract developments anticipate global hydrogen energy transition

Hexagon Purus (Ålesund, Norway) is a zero-emission mobility company, providing Type IV high-pressure composite cylinders, fuel storage and distribution systems for hydrogen, as well as complete vehicle systems and battery packs for fuel cell electric and battery electric (FCEV and BEV) vehicles. Since its spin-off from Hexagon Composites ASA (Hexagon, Alesund, Norway) in Oct. 2020, the company has signed multiple contact agreements for the supply of its products and reported exponential revenue growth.

In its Q4 2021 report, the company says its revenue grew 690% year over year to NOK 259 million (approx. $29 million). This was driven primarily by continued strength in hydrogen distribution, and aided by contribution from its successfully acquired partner, Wystratch GmbH (Weeze, Germany), a systems and solutions provider for storage and transport of compressed gases with strong exposure to hydrogen applications. Revenue excluding Wystrach on a pro forma basis was NOK 130 million (~$14.5 million). 

Further, Hexagon Purus notes that reported revenue for the twelve months of 2021 grew 182% to NOK 508 million (180) million (~$57 million), driven by increased hydrogen distribution and transit bus business. EBITDA was NOK -265 (-141) million. Continued investments in personnel and infrastructure continues to support and accelerate Hexagon Purus’ future growth drive negative profitability.

The company has experienced several recent key developments for 2022. Through its wholly owned subsidiary, Wystratch, Hexagon Purus has received an order for hydrogen distribution systems from a global industrial gas company to be used in industrial and mobility applications based in Germany and the Benelux region. The systems will be supplied by Wystratch, and the Type IV cylinder supplied by Hexagon, and are scheduled for delivery from Q2 through Q4 2022. The order is valued at approximately €5.7 million (approx. NOK 58 million). 

Another hydrogen distribution systems order has been received from Dutch-based Van Kessel (Netherlands), a supplier of fuels, lubricants and energy, to drive the Dutch hydrogen market. Delivery is scheduled for between Q3 2022 to Q1 2023, and retains an order value of approximately €1.5 million (approx. NOK 15 million).

An order for Hexagon Purus’ Type IV high-pressure hydrogen cylinders from Reliance Industries Ltd. (Maharashtra), said to be India’s largest private sector company, will be used as prototypes in pilot projects for automotive and back-up power solutions in the region, and represents Hexagon Purus’ first orders for hydrogen applications in India. Reliance recently announced an $80 billion investment program into clean energy whereby hydrogen will play a pivotal role to drive decarbonization. The cylinders are due to be delivered in the first half of 2022. 

The company also notes it has signed an exclusive, long-term supply agreement with a leading European bus OEM for hydrogen storage systems with an estimated sales value of €30 million for deliveries between 2021 and 2024.

Additional key developments after its Q4 2021 report balance sheet date include:

• Signed a long-term binding letter of intent (LOI) with Hino Motors Manufacturing U.S. Inc. (Novi, Mich., U.S.). Hexagon Purus will provide battery packs for multiple Hino truck platforms with serial production planned from 2024. The total sales value over the life of the agreement is estimated at $1 billion.
• Nominated by leading and long-standing commercial truck OEM to provide battery packs for serial production of battery electric heavy-duty vehicles between 2024 and 2027, with an option to extend until 2029. The total sales value for the initial period from 2024-2027 is estimated at approximately $800 million, increasing to approximately $1.2 billion if the extension option is exercised.
• Received orders worth €7.2 million approximately for hydrogen distribution systems from various customers.
• Selected to work together with Germany-based BMW (Munich), Robert Bosch (Gerlingen) and TesTnet Engineering (Oberding) to develop an innovative hydrogen storage system solution for future fuel cell passenger cars.

As hydrogen, a key contributor to the energy transition, continues to build momentum globally, Hexagon Purus reports that more than 30 countries have released hydrogen roadmaps, more than $70 billion in government funding is committed to hydrogen investments, more than 500 large-scale hydrogen projects have been announced by the industry to date and green hydrogen is projected to supply up to 25% of the world’s energy needs by 2050.