The Green Shift: Hexagon Agility's Bold Move in Renewable Natural Gas
August 15, 2024, 10:23 pm
In a world grappling with climate change, every step toward sustainability counts. Hexagon Agility, a subsidiary of Hexagon Composites, is making strides in this arena. Recently, the company secured a substantial order for renewable natural gas (RNG) fuel systems from a major refuse fleet in North America. This deal, valued at $18.7 million, is not just a financial transaction; it’s a beacon of hope for cleaner transportation.
The refuse fleet faces unique challenges. Heavy payloads and demanding operating environments are the norm. Yet, the transition to RNG offers a lifeline. It’s a cost-effective solution that reduces carbon footprints while maintaining operational efficiency. Think of it as a bridge connecting traditional practices to a greener future.
RNG is derived from organic materials. This includes agricultural waste, food scraps, and even landfill gas. When used as fuel, it can produce carbon-negative results. This means that instead of adding to the problem, RNG helps mitigate it. According to The Transport Project, 79% of all on-road fuel used in natural gas vehicles in the U.S. was RNG in 2023. This figure represents a remarkable growth of 16% from the previous year and a staggering 234% increase over the last six years. The momentum is undeniable.
Hexagon Agility is not just riding the wave; it’s shaping it. The company’s RNG fuel systems are set to hit the market in the third quarter of 2024. This timing aligns perfectly with the growing demand for sustainable fuel solutions. The refuse fleet’s decision to adopt RNG is a testament to the changing landscape of transportation. It’s a clear signal that businesses are ready to embrace cleaner alternatives.
The financial health of Hexagon Composites further underscores this shift. In its second-quarter report for 2024, the company announced revenues of NOK 1,150 million, slightly down from NOK 1,161 million in the same quarter last year. However, the EBITDA rose to NOK 137 million, marking a 25% increase. This improvement reflects the company’s commitment to innovation and sustainability.
Hexagon Composites recently sold Hexagon Ragasco, a significant player in the composite cylinder market, to Worthington Enterprises for NOK 1,050 million. This strategic move allows Hexagon to sharpen its focus on alternative fuels and high-pressure industrial gases. It’s a clear indication that the company is pivoting toward a future dominated by clean energy solutions.
Looking ahead, the outlook for Hexagon is promising. The company anticipates increased revenues from fuel systems, driven by the growing demand for RNG and compressed natural gas (CNG). As the world moves away from conventional fuels like diesel, the economic competitiveness of RNG becomes increasingly attractive. Customers are not just looking for cost savings; they are also pursuing decarbonization targets.
Hexagon’s capacity expansion program is nearing completion. This expansion is strategically timed to meet the anticipated growth through 2025 and beyond. The company is positioning itself as a leader in the clean energy transition. It’s not just about profits; it’s about making a difference.
The refuse fleet’s decision to adopt RNG is a microcosm of a larger trend. Across industries, companies are recognizing the importance of sustainability. The pressure to reduce emissions is mounting. Consumers are demanding greener options. Businesses that adapt will thrive; those that don’t may find themselves left behind.
Hexagon Agility’s role in this transition is crucial. By providing reliable and efficient RNG fuel systems, the company is enabling fleets to operate sustainably. It’s a win-win situation. Fleets can reduce their carbon footprints while maintaining their bottom lines. This is the essence of modern business: sustainability and profitability can coexist.
The road ahead is filled with challenges. Transitioning to renewable fuels requires investment and commitment. However, the rewards are significant. A cleaner environment, reduced emissions, and a sustainable future are within reach. Hexagon Agility is leading the charge, proving that change is not only possible but profitable.
In conclusion, Hexagon Agility’s recent order for RNG fuel systems is more than just a business deal. It’s a step toward a greener future. As the refuse fleet embraces this change, it sets a precedent for others to follow. The shift to renewable natural gas is not just a trend; it’s a necessity. Hexagon is at the forefront of this movement, paving the way for a sustainable tomorrow. The journey has just begun, but the destination is clear: a cleaner, greener world for all.
The refuse fleet faces unique challenges. Heavy payloads and demanding operating environments are the norm. Yet, the transition to RNG offers a lifeline. It’s a cost-effective solution that reduces carbon footprints while maintaining operational efficiency. Think of it as a bridge connecting traditional practices to a greener future.
RNG is derived from organic materials. This includes agricultural waste, food scraps, and even landfill gas. When used as fuel, it can produce carbon-negative results. This means that instead of adding to the problem, RNG helps mitigate it. According to The Transport Project, 79% of all on-road fuel used in natural gas vehicles in the U.S. was RNG in 2023. This figure represents a remarkable growth of 16% from the previous year and a staggering 234% increase over the last six years. The momentum is undeniable.
Hexagon Agility is not just riding the wave; it’s shaping it. The company’s RNG fuel systems are set to hit the market in the third quarter of 2024. This timing aligns perfectly with the growing demand for sustainable fuel solutions. The refuse fleet’s decision to adopt RNG is a testament to the changing landscape of transportation. It’s a clear signal that businesses are ready to embrace cleaner alternatives.
The financial health of Hexagon Composites further underscores this shift. In its second-quarter report for 2024, the company announced revenues of NOK 1,150 million, slightly down from NOK 1,161 million in the same quarter last year. However, the EBITDA rose to NOK 137 million, marking a 25% increase. This improvement reflects the company’s commitment to innovation and sustainability.
Hexagon Composites recently sold Hexagon Ragasco, a significant player in the composite cylinder market, to Worthington Enterprises for NOK 1,050 million. This strategic move allows Hexagon to sharpen its focus on alternative fuels and high-pressure industrial gases. It’s a clear indication that the company is pivoting toward a future dominated by clean energy solutions.
Looking ahead, the outlook for Hexagon is promising. The company anticipates increased revenues from fuel systems, driven by the growing demand for RNG and compressed natural gas (CNG). As the world moves away from conventional fuels like diesel, the economic competitiveness of RNG becomes increasingly attractive. Customers are not just looking for cost savings; they are also pursuing decarbonization targets.
Hexagon’s capacity expansion program is nearing completion. This expansion is strategically timed to meet the anticipated growth through 2025 and beyond. The company is positioning itself as a leader in the clean energy transition. It’s not just about profits; it’s about making a difference.
The refuse fleet’s decision to adopt RNG is a microcosm of a larger trend. Across industries, companies are recognizing the importance of sustainability. The pressure to reduce emissions is mounting. Consumers are demanding greener options. Businesses that adapt will thrive; those that don’t may find themselves left behind.
Hexagon Agility’s role in this transition is crucial. By providing reliable and efficient RNG fuel systems, the company is enabling fleets to operate sustainably. It’s a win-win situation. Fleets can reduce their carbon footprints while maintaining their bottom lines. This is the essence of modern business: sustainability and profitability can coexist.
The road ahead is filled with challenges. Transitioning to renewable fuels requires investment and commitment. However, the rewards are significant. A cleaner environment, reduced emissions, and a sustainable future are within reach. Hexagon Agility is leading the charge, proving that change is not only possible but profitable.
In conclusion, Hexagon Agility’s recent order for RNG fuel systems is more than just a business deal. It’s a step toward a greener future. As the refuse fleet embraces this change, it sets a precedent for others to follow. The shift to renewable natural gas is not just a trend; it’s a necessity. Hexagon is at the forefront of this movement, paving the way for a sustainable tomorrow. The journey has just begun, but the destination is clear: a cleaner, greener world for all.