Hexagon Composites

Regulatory Filings • Feb 26, 2024

Hexagon Agility receives orders for Class 8 series trucks piloting the new Cummins X15N CNG engine

Hexagon Agility receives orders for Class 8 series trucks piloting the new Cummins X15N CNG engine

Hexagon Agility, the world's leading provider of (renewable) natural gas fuels

systems, confirms new orders for CNG / RNG fuel system installations on pilot

trucks powered by Cummins' new X15N natural gas engine developed for the North

American commercial truck market. These orders are destined for major fleets and

cover two leading original equipment manufacturers (OEMs). The orders come in

addition to existing pilots that are already on the road with Hexagon Agility

fuels systems.

Order books are now open

As of February, Kenworth Truck Company, one of the top three truck OEMs in North

America, is the first to open its order books for trucks powered by the Cummins

X15N engine.

Kenworth and Cummins have stated that trucks equipped with the X15N engine will

be in serial production by mid-2024 with initial deliveries expected early in

the third quarter.

Natural gas goes head-to-head with diesel in the heavy-duty sector

"The launch of the Cummins X15N, 15-liter engine will triple the addressable

market for heavy-duty natural gas trucks over the next few years," says Eric

Bippus, EVP Sales & Systems Development, Hexagon Agility. "This is a game

-changer for our niche industry, enabling a powerhouse solution for Class 8

fleets traveling locally and cross country. The 15-liter delivers enhanced fuel

efficiency and maximum uptime."

The highly anticipated, industry-first X15N natural gas engine by Cummins is

designed to deliver a range of long-haul applications like diesel - while

significantly reducing emissions. Powered by RNG/CNG the X15N is capable of

meeting stringent EPA and CARB regulations in 2024 and 2027. With power ratings

up to 500 hp (~370 kW) and torque up to 1850 lb.-ft, (~2500 Nm) the engine

allows natural gas to go head-to-head with diesel in the heavy-duty sector.

Hexagon Agility expands capacity as more fleets are expected to "make the

switch"

Hexagon Agility expects demand for the new engine will ramp-up gradually during

2024 and the Company's addressable market for natural gas long-haul trucks will

increase at pace with the segment when this new engine is widely available.

Hexagon Agility's current capacity expansion program will substantially increase

cylinder volumes for heavy-duty truck applications. Production start for the new

line is set for the first quarter of 2025, to coincide with the increased market

demand. Learn more in Hexagon's Q4 2023 results

presentation (https://hexagongroup.com/news/hexagon-composites-asa-fourth

-quarter-2023).

About the North America heavy-duty truck market

Approximately 330,000 heavy duty trucks are sold annually in the North American

market[1].

100,000 of these trucks make up the addressable market for (renewable) natural

gas (RNG/CNG) solutions currently. The 9- and 12- liter natural gas engines on

the market are a good match for the usage patterns of these trucks - vocational

and day cab regional haul applications, mainly. This is supported by a strong

RNG/CNG filling station network of 1500+ stations across all key transport

corridors in North America.

The introduction of the Cummins X15 will unlock the long-haul market segment for

RNG/CNG that requires high horsepower applications and can demand a range of up

to 1,300 miles/2,000 km (matching the capabilities of diesel). This adds 230,000

heavy duty trucks to the addressable RNG/CNG market annually.

For more information, please contact:

Karen Romer, SVP Communications, Hexagon Composites

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

Jelena Rowe, Senior Manager Marketing & Communications, Hexagon Agility

Telephone: +1 310-872-0535| jelena.rowe@hexagonagility.com

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, 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 Twitter 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 Twitter and LinkedIn.

1)Source: ACT Research