Hexagon Composites says its Hexagon Raufoss subsidiary has been nominated by an international vehicle modifier to supply compressed natural gas (CNG) fuel tanks for a new natural gas vehicle (NGV) model in Europe. Although Hexagon has not disclosed much detail about the customer or the vehicle, the company notes the new NGV model will enter the European market during the second half of 2016.
According to the agreement, the first deliveries are targeted for the end of the second quarter of 2016, and the program is scheduled to run for up to seven years. The estimated overall delivery value is approximately $18 million.
“This is a new customer to Hexagon Raufoss, and we are very pleased to enter into a long-term agreement with them. The nomination will further strengthen our cooperation with NGV modifiers in Europe,” comments Ragnar Holthe, managing director of Hexagon Raufoss. “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.”
