Hexagon Raufoss has been nominated by a leading international vehicle modifier, to supply compressed natural gas (CNG) fuel tanks to Natural Gas Vehicles (NGV).
According to Hexagon, the new NGV car model will enter the European market during second half of 2016. The first deliveries are targeted for end of second quarter 2016, and the program is scheduled to run for up to seven years. The estimated overall delivery value is around NOK 150 million (approximately USD 18 million).
“This is a new customer and it is very pleased to enter into a long-term agreement with them. The nomination will further strengthen our co-operation with NGV modifiers in Europe. We experience that the increased global focus on emissions drives the demand for compressed natural gas and other alternative fuels by choosing vehicle storage technology that reduces emissions and fuel costs,” comments Ragnar Holthe, Managing Director of Hexagon Raufoss.
Hexagon explains that the environmental benefits of reduced particulates, NOx, SOx and CO2 emissions, continue to attract customers and investments towards adopting Natural Gas Vehicles. In addition, the stability of CNG prices remains attractive compared to relatively volatile diesel prices.
Industries: Automotive and Road Transportation