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