Order for ‘SmartStore’ Modules Is Worth $3.8 Million U.S.,
Separately, Hexagon Acquires Heavy NGV Integrator in Brazil
Hexagon Composites said today that its Hexagon Lincoln subsidiary in Nebraska has secured an order worth $3.8 million U.S. for its “SmartStore” modules, to be used to transport biomethane in Britain.
The order is for a new customer, the company says. “The gas will be produced from residual waste in the food industry and distributed to fuel multiple manufacturing plants of a high-tech industry cluster in the United Kingdom,” states a release.
“Biomethane,” the company explains, “is one of the key fuels enabling the global green transition.
‘Identical to Natural Gas’
“Biogas is created by the decomposition of organic matter from landfills, food production, and agriculture waste. Once cleaned of other gases, biomethane is identical to natural gas, and can be used with the same infrastructure and technology. Capturing this gas keeps it out of the atmosphere and creates a renewable fuel source.”
“As the world increases its focus on reducing greenhouse gases, we expect the market for transportation of biomethane to grow substantially,” Hexagon Mobile Pipeline VP Frank Haeberli says in the UK order release.
Ten or 20-Foot Trailer Lengths
“All of our Mobile Pipeline solutions are suited for the storage and transport of this renewable fuel,” he said.
Hexagon’s SmartStore trailers are available in lengths of ten or 20 feet, with as many as 15 of the company’s TuffShell brand compressed natural gas cylinders. They been used for this application in Scandinavia “for many years,” Hexagon says, and in Southeast Asia since last year.
Hexagon Buys Part of Brazil’s Convergas
SmartStore complements the firm’s newer 40-foot Titan trailers, which use much larger diameter CNG cylinders and are better suited for higher-demand customers.
The UK SmartStore order will be fulfilled in the second half of 2016.
In a separate action, Norway-based Hexagon Composites has acquired from Sao Paulo-based Convergas 67% of an operation to help it pursue opportunities for its Type IV CNG cylinders for transit buses and heavy-duty trucks. A new entity named Hexagon Composites Brazil “will address market opportunities primarily in South America and Africa,” states a release.
A $1 Million Acquisition
Hexagon claims the world lead in Type IV cylinders for CNG transit buses – “The Brazilian footprint enhances this leadership position further,” Hexagon says. The remaining 33% of the Brazilian operation will be held by Tony Bermudo, named as managing director of Hexagon Composites Brazil.
The initial purchase price was $1 million U.S. “Hexagon Composites will increase its ownership to 100% according to an earn-out model at a later stage,” the announcement states, predicting turnover of approximately $2 million this year.
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Source: Hexagon Composites with Fleets & Fuels follow-up