Hexagon Composites

Regulatory Filings • May 16, 2024

Hexagon Agility renews master service agreement with UPS and receives new fuel system orders for UPS' heavy duty renewable natural gas trucks

Hexagon Agility renews master service agreement with UPS and receives new fuel system orders for UPS' heavy duty renewable natural gas trucks

16 May 2024: Hexagon Agility, a business of Hexagon Composites, signed a 3-year

extension of its master services agreement with UPS in February 2024 to supply

renewable natural gas (RNG) fuel systems for medium- and heavy-duty trucks. UPS

is the world's premier package delivery company and a leading provider of global

supply chain management solutions.

Under the extended agreement, Hexagon Agility has received new orders totaling

USD 57.7 million (approx. NOK 620 million) for delivery of RNG fuel systems for

heavy-duty trucks. The orders include trucks utilizing the new 15-liter (X15N)

natural gas engine.

"In the past decade Hexagon Agility has supported the deployment of over 100,000

near-zero emission vehicles globally," said Eric Bippus, EVP of Sales and System

Development at Hexagon Agility. "UPS has been a pioneer in sustainable

transportation. Once again, they are taking the lead and are among the first

companies enhancing their fleet with the game-changing X15N engine and our fuel

systems."

RNG in heavy-duty transport results in significant reductions of greenhouse gas

(GHG) emissions. In 2023, 6.96 million metric tons of carbon dioxide equivalents

were displaced by RNG in the U.S.* This is equal to removing 17 billion miles

driven by the average passenger car.

In North America, RNG is supported by abundant natural gas pipeline

infrastructure which allows for its immediate use today, and for decades to

come. Hexagon Agility is enabling adoption of RNG to cost effectively combat

climate change.

About the market

Never before have there been so many natural gas trucks on the road. According

to The Transport Project there are more than 175,000 natural gas vehicles on US

roads today.

In 2023, RNG accounted for 79% of all on-road fuel used in natural gas vehicles

in the United States. Meanwhile, fuel providers and RNG producers are rapidly

expanding output and availability of RNG at the pump, adding to the 1,500

natural gas fueling stations available across North America today.

Timing

Deliveries of the new orders are expected to be completed by the end of the

fourth quarter of 2024. The bulk of the orders will be completed in the second

half of 2024.

For more information:

Karen Romer, SVP Communications, Hexagon Composites ASA

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

Ingrid Aarsnes, VP Investor Relations and ESG, Hexagon Composites ASA

Telephone: +47 950 38 364 | ingrid.aarsnes@hexagongroup.com

*Natural Gas Vehicles for America (NGVAmerica) and Coalition for Renewable

Natural Gas (RNG Coalition)

About Hexagon Agility

Hexagon Agility, a business of Hexagon Composites, is a leading global provider

of clean fuel solutions for commercial vehicles and gas transportation

solutions. Its product offerings include (renewable) natural gas storage and

distribution systems, Type 4 composite natural gas cylinders, propane, and

(renewable) natural gas fuel systems. These products transport clean gaseous

fuels and enable vehicles to reduce emissions while saving operating costs.

Learn more at hexagonagility.com and follow @HexagonAgility on X and LinkedIn.

About Hexagon Composites ASA

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. Learn more at

hexagongroup.com and follow @HexagonASA on X and LinkedIn.