Hexagon Agility pens extended deal with UPS to supply RNG fuel systems

Hexagon Agility, a business unit of Norway’s Hexagon Composites, has signed a three-year extended agreement worth $57.7mn with US-based logistics company UPS for the supply of renewable natural gas (RNG) fuel systems for medium- and heavy-duty trucks, it said on May 16.

Under this extended agreement, Hexagon Agility will deliver RNG fuel systems for heavy-duty trucks, including those equipped with the new 15-liter (X15N) natural gas engine. The company highlighted that using RNG in heavy-duty transport can significantly reduce greenhouse gas (GHG) emissions. In 2023, RNG in the US displaced 6.96mn metric tonnes of carbon dioxide equivalents, equivalent to removing 17bn miles driven by the average passenger car.

According to industry collective The Transport Project, over 175,000 natural gas vehicles are currently on US roads. In 2023, RNG made up 79% of all on-road fuel used in these vehicles. Fuel providers and RNG producers are rapidly increasing the output and availability of RNG, with over 1,500 natural gas fueling stations now operational across North America.

The delivery of the new orders is scheduled to be completed by the end of the fourth quarter of 2024, with the majority of deliveries expected in the second half of the year, Hexagon Agility said.