Hexagon Composites — Capital/Financing Update 2020

Jul 21, 2020

Hexagon granted funding by the U.S Department of Energy

Hexagon granted funding by the U.S Department of Energy

Hexagon has been granted USD 2.6 million (approx. NOK 24 million) in initial

funding by the U.S Department of Energy (DOE) to research how carbon fiber and

composite structure can be optimized to reduce hydrogen and natural gas storage

tank costs.

Hexagon's research project was chosen following a competitive selection process

and the DOE has announced funding opportunities for a total of 18 projects that

support H2@Scale's vision for affordable hydrogen production, storage,

distribution, and use.

H2@Scale is a DOE initiative that supports innovations to produce, store and

utilize hydrogen across multiple sectors.

"We are excited to be selected for funding by the DOE. The funding will enable

our team to deep dive into the details of how we can reduce tank costs without

compromising on safety. This is an important step towards a large-scale

acceptance of zero and low emissions vehicles", says Rick Rashilla, SVP Research

& Development in Hexagon. "We look forward to working with our teammates at the

National Labs and in the industry to accomplish a step change in cost reduction,

and we are pleased that our competence, experience and potential have been

recognized by the DOE".

Projects that receive the funding will fuel the next round of research,

development, and demonstration activities under H2@Scale's multi-year initiative

to fully realize hydrogen's benefits across the U.S economy.

Funding negotiations and work scope definition with the DOE is expected to be

completed by Q3 2020.

Contacts:

Karen Romer, SVP Communications, Hexagon Composites

Telephone: +47 950 74 950 | karen.romer@hexagongroup.com

David Bandele, CFO, Hexagon Composites

Telephone: +47 920 91 483 | david.bandele@hexagongroup.com

About Hexagon Composites

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 including light-,

medium- and heavy-duty vehicles, ground storage, distribution, marine, rail and

backup power solutions.

With extensive experience in pressure vessel development since the early 1960s,

our long and proud history is rooted in innovation and change. We have a strong

international presence with facilities in Norway, Germany, USA and Canada, and

sales representation in some of the world's most important clean energy markets

in Europe, Asia, and the Americas.

Learn more at www.hexagongroup.com and follow @HexagonASA on Twitter and

LinkedIn.