Hexagon Agility, a subsidiary of Hexagon Composites, has received orders from a major heavy-duty fleet in North America for natural gas fuel systems, which will be powered by renewable fuel. The orders represent an estimated value of USD 27.1 million. Deliveries of the fuel systems are scheduled to start Q1 2023.
“We commend our customer for its ongoing commitment to further its emission reduction targets through the use of renewable natural gas,” said Seung Baik, President of Hexagon Agility. “In 2021, 64% of all on-road fuel used in the United States for natural gas vehicles was renewable natural gas, delivering carbon negative results nationwide. With the recent USD 0.50 per gallon federal Alternative Fuel Tax Credit extension, our government has affirmed its commitment to supporting renewable natural gas for years to come.”
Biomethane results in the greatest reduction of greenhouse gas (GHG) emissions of any clean energy solution available today in the transport sector. In addition, it is supported by vast infrastructure in North America, allowing for immediate deployment of this cost effective and commercially available technology. Research shows that biomethane derived from agricultural waste can offer more than 200% improvement in well-to-wheel emission reductions compared to diesel, and is the only carbon-negative fuel available.
In the U.S., the Inflation Reduction Act signed into law in August aims to bring down costs and boost energy supply, cutting inflation and substantially reducing GHG emissions. Of the total USD 739 billion package, USD 369 billion is earmarked for “Energy Security and Climate Change” which would put the U.S. on a path to a roughly 40% emissions reduction by 2030. Tens of billions of dollars will go toward supporting renewable energy development, including tax credits and grants for clean fuels and clean commercial vehicles, including heavy-duty vehicles such as transit buses and garbage trucks.
Source: Hexagon Group