The company announces the cancellation of this development project and supply arrangement.
Hexagon has been informed by the OEM that the development project for pressure cylinders is cancelled due to reasons unrelated to Hexagon.
While Hexagon regrets the cancellation, it will free up resources and allow pursuit of other opportunities in the very dynamic hydrogen market space.
This information is subject to a duty of disclosure pursuant to Section 5-12 of the Norwegian Securities Trading Act.
Hexagon is currently developing the tanks to support anticipated production activities as early as 2020. Production is planned to run for at least five years. Hexagon estimates the combined value for development and serial production to be in the range of USD 120 to 150 million (approximately NOK 1.0 billion to 1.2 billion).
“This is a strategically important customer contract fulfilment for Hexagon and the growing FCEV industry. Hexagon Composites is committed to investing significant resources into the success of these projects and for the adoption of Hydrogen in combination with fuel-cell technology as a low-carbon alternative fuel for mobility applications. An award of this size signals the vast long-term potential of this market. Maintaining market leadership based on our integrity, attention to safety and delivering to customer specifications are key focal points for the Company. This selection confirms our leading position as a light-duty hydrogen tank developer for the FCEV industry. The project leverages Hexagon’s global footprint in Nebraska, Ohio and Kassel, Germany”, said Rick Rashilla, Senior Vice President of Hexagon Composites’ Hydrogen Automotive business.
“Hexagon has been actively supported in the process by Mitsui & Co. Ltd., our strategic alliance partner. This is a good example of the benefits of the alliance between the two companies in terms of increasing our global reach”, said Jack Schimenti, Executive Vice President of Hexagon Composites ASA.
Hydrogen is a clean and safe energy carrier that can be used as fuel for power in a wide range of applications, and can be easily stored on a large scale. The life cycling properties of all-composite pressure cylinders, with plastic liners and carbon fiber structure, make them more suitable for storage of hydrogen than metal lined alternatives.