Setting the pace for growth

All of Hexagon’s businesses are addressing energy related opportunities. The energy markets have undergone profound changes over the last few years. The cleaner energy transition, supported by public and private players, is happening now.

The launch of the Hydrogen Council, chaired by major energy and mobility players, demonstrates a strong commitment to hydrogen technology and investments. Through the consortium “CNG Mobility”, the Volkswagen Group and leading German industrial players are taking the lead, aiming at 1 million CNG cars in Germany by 2025. We are proud to be part of both initiatives to continue enhancing the essential role of hydrogen, CNG and biogas in the future energy mix.

To be phased in from 2020, EU legislation sets stricter CO2 emission targets for new cars. The OEMs are mandated to swiftly deploy low carbon emission vehicles to meet the new regulations.

For Hexagon, these developments – combined with numerous others, represent major opportunities and we have good reasons for considerable optimism. 

"We aim to lead the markets in renewable gas storage,
distribution and fuel systems technology and solutions.


2017 at a glance

Hexagon Ragasco continues to increase the market penetration of LPG composite cylinders. We are investing in our facility at Raufoss to further improve manufacturing efficiency and product differentiation, as well as provide more production capacity. Innovations aimed at safety, ease of use, and high corrosion resistance are expected to make a positive impact upon the demand for LPG cylinders globally.

Our Hydrogen business has experienced exceptional growth since it was established at the beginning of 2016. During 2017 we had commercial sales to rail, distribution, refueling station, passenger car and heavy-duty vehicle markets. The award of a development contract for hydrogen cylinders for new fuel cell electric vehicle (FCEV) models represents a major milestone for us. 

In Germany, we see a strong g-mobility drive in the light-duty vehicle market and an increasing consensus that climate targets cannot be reached without natural gas and biogas. We have confidence in the fundamentals of our CNG Light-Duty Vehicle business and the outlook for 2018 is very promising. 

After a couple of challenging years for our Mobile Pipelines business, we see recovery in volumes particularly in North America, and strong underlying growth drivers globally. Natural gas has an increased portion of the energy mix, and biogas (renewable natural gas) is becoming more important in North America and Europe. 

During fourth quarter of 2017, we successfully launched an efficient testing technology solution for our Mobile Pipeline® customers which minimizes their downtime during regulatory requalification of these modules. A large number of modules are due for regulatory requalification in the U.S. during 2018.

Medium and heavy-duty vehicles markets have been soft during 2017, however, Agility Fuel Solutions’ strong focus on cost efficiencies has created a sound platform for maximizing financial performance in an otherwise soft market. Cummins Westport’s introduction of a “near zero” emissions 12L natural gas engine is expected to be a positive development for Natural Gas Vehicles going forward.

Set for further growth

Having made significant strategic moves in 2016, our priority in 2017 has been to ensure optimal integration of the new businesses, with an emphasis on the realization of synergies. 

Hexagon has established a unique position as the global market leader in safe and innovative mobility solutions for a cleaner energy future. We see strong growth drivers both short and long term across all business units. 

Sharpening our focus on cleaner energy opportunities

Hexagon is evolving from trusted product supplier to trusted solutions provider with increasing momentum. We are adopting our leading and proven Type 4 composite pressure tank technology for a wide range of mobility and storage applications in the energy market. 

We are seeing a major paradigm shift in the energy transition. Hexagon views hydrogen as an essential energy carrier in the development of decarbonized energy systems. g-mobility, the use of gas in mobility applications, is the fastest way to reduce CO2 emissions in the transportation sector in a short-term.

Biogas is a commercially viable fuel, supported by governmental incentives. Biogas can rely on existing natural gas infrastructure and is based on proven technology.  

As a carbon-negative solution, biogas provides the world’s energy system with several advantages: it contributes to reaching climate targets through reduced CO2 emissions sequestration and can improve air quality by being used as a vehicular fuel displacing petrol. Further, it advances energy security as it can be produced locally using available biowaste. Biogas is the most emission-friendly fuel available today.

We aim to lead the markets in renewable gas storage, distribution and fuel systems technology and solutions. Hexagon is responding to these market opportunities and has organized Hydrogen and Light-Duty Vehicle activities into a dedicated business segment. Looking ahead, Hexagon will focus on forward integration and providing solutions around the hydrogen value chain. 

Our Hydrogen business is a key focus area for our strategic partner and major owner, Mitsui & Co. The alliance secures a valuable and long-term minded partner and allows for deeper value chain penetration, directly leveraging the hydrogen opportunity.

Organizational development is key to success

In 2018 we will make substantial investments in our organization, research and development and production capacity to meet market demands and maintain technology leadership. Adapting to change can be demanding and challenging, and requires that we fundamentally change the way we think and work together.

I am grateful for the hard work and dedication exhibited by our people during this year. As we look forward to meeting market demands and unlocking new opportunities, I express my sincere gratitude for the cooperation and support from our shareholders and other key stakeholders during 2017.


Annual Report 2017