Hexagon Composites, a designer and manufacturer of clean fuel solutions for commercial vehicles, has acquired a 40% stake in Cryoshelter GmbH, an Austria-based company specializing in the development of cryogenic tank technology for liquid natural gas (LNG) and liquid hydrogen (LH2).
The Hexagon Group provides compressed natural gas (CNG), including renewable natural gas (RNG), compressed hydrogen and battery-electric systems as part of its portfolio of clean fuel solutions. Liquid storage of natural (renewable) gas and hydrogen will add a new dimension to its existing offering, complementing its portfolio and unlocking new opportunities for Hexagon Agility and Hexagon Purus, respectively.
“Cryoshelter has a potentially disruptive technology with competitive edge compared to existing technology alternatives in the market. Our goal is to aid the commercialization and industrialization of this technology,” says Jon Erik Engeset, CEO of Hexagon Composites. “The addition of Cryoshelter’s technology extends our product portfolio to include leading liquid gas solutions. This will further strengthen our efforts to drive decarbonization in the heavy-duty transport sector, support Europe and other key geographies in securing energy independence and reinforce our position as a global leader in clean energy solutions.”
“Our people possess extensive education, knowledge and experience in the engineering and design of cryogenic tanks. We are excited to team up with Hexagon as they bring industrial expertise, a global presence and customer potential to escalate the scale up of our operations,” states Dr. Matthias Rebernik, CEO and founder of Cryoshelter. “Hexagon’s investment into our company is proof of confidence in our technology.”
In liquid form, natural (renewable) gas has a high energy density. Cryoshelter’s technology leverages this energy density by providing utilization of vehicle frame rail space. This results in a driving range that is comparable to diesel and a total cost of ownership that is significantly lower for the fleet owner.
Together, Hexagon and Cryoshelter will industrialize Cryoshelter’s existing LNG technology and production capability, and use the LNG technology platform to further develop liquid hydrogen (LH2) solutions for heavy duty transport.
Hexagon Composites ASA will make an initial investment to acquire 40% of Cryoshelter’s liquid natural (renewable) gas (LNG) business, with options to buy remaining interests over the next 3 to 10 years. Together with Cryoshelter, Hexagon will further develop the technology and scale up the business over the coming years.
Hexagon Purus ASA (owned 73.3% by Hexagon Composites) will make an initial investment to acquire 40% of Cryoshelter’s liquid hydrogen (LH2) business, with options to buy remaining interests over the next 5 to 10 years. Together with Cryoshelter, Hexagon Purus will further develop the technology and business over the coming years. (Reference Hexagon Purus announcement, April 21, 2022).
The separation of Cryoshelter’s liquid natural (renewable) gas and liquid hydrogen businesses recognizes the different phases of market and product development. There is an established market for liquid natural gas mobility solutions and Cryoshelter’s technology is already at a pre-commercial stage, while the market and products for liquid hydrogen storage are in the early stage of development with longer timeframe to commercialization. Closing of the transaction is expected to take place by the third quarter of 2022, subject to fulfilment of certain closing conditions and customary regulatory approvals.