Manufacturing

Driving Energy Transformation

Long-term agreement with a major North American OEM for complete vehicle integration of battery electric heavy-duty vocational vehicles

Hexagon Purus, a world leading manufacturer of zero emission mobility and infrastructure solutions, has signed a long-term agreement with a major North American OEM to provide complete vehicle integration of battery electric vocational trucks in North America.

The scope of this agreement is for complete vehicle integration of battery electric vocational trucks with Hexagon Purus’ proprietary zero-emission technology, including battery systems, auxiliary modules, power modules and vehicle-level software. These vocational trucks will be compliant with, amongst other, the Advanced Clean Truck regulation in California, which requires all truck manufacturers and distributors to have an incrementally higher zero-emission vehicle content when selling in California from 2024 and onwards. The contract will run from 2024 and has an estimated potential sales value of approximately USD 150 million. 

Driving Energy Transformation

“We are excited to strengthen our relationship with this globally leading OEM by leveraging our common experiences with developing zero-emission heavy-duty trucks. Our unique vehicle integration capabilities coupled with our proprietary product portfolio of key components and technologies required for 

electrification of heavy-duty trucking, make us an attractive partner for OEMs looking to go zero-emission”, says Morten Holum, CEO of Hexagon Purus.

“As a supplier of critical technology needed for zero-emission mobility, this agreement further strengthens our position as a strategic partner for OEM customers”, says Todd Sloan, EVP of Hexagon Purus. “We are proud to continue our long-standing relationship with this OEM, and we look forward to supporting them in this vocational vehicle program and in driving their transition to zero-emissions mobility”.

About the market

To reach the 1.5°C ambition set by the Paris agreement back in 2015 the transportation sector is required to reduce emissions by 75% until 2050. In the U.S., both the Environmental Protection Act (EPA) and California Air Resources Board (CARB) have introduced proposals and regulations that addresses the need for further reductions in emissions in the transportation sector. In California, CARB has introduced a regulation for truck manufacturers (Advanced Clean Truck standard), and more recently, proposed a new regulation for fleet owners (Advanced Clean Fleet standard). Both regulations aim at reducing emissions and accelerate the adoption of zero-emissions vehicles (ZEVs) in the transportation sector in California. As part of both the Advanced Clean Truck (ACT) and the proposed Advanced Clean Fleet (ACF) regulations, the truck manufactures and fleet owners are required to have an incrementally higher ZEV content when selling or operating a fleet of trucks in California from 2024 onwards. The ACT regulation has already been adopted by five other states in the U.S. (Massachusetts, New Jersey, New York, Oregon, and Washington) and two more states are in the public process required to adopt (Colorado and Main).

The ACT requires amongst other that 5% of all new class 7 and 8 trucks sold in 2024 in California must be ZEV while new additions to fleets of class 7 and 8 trucks operating to and from intermodal seaports and railyards are required to be ZEV from 2024. The ACT regulation also requires 100% of truck manufacturers’ sales in 2040 to come from ZEVs, putting an effective end to sale of internal combustion engine trucks in California and incentivizes investments into infrastructure and supply chain.   

There are approximately 1.8 million commercial trucks operating in California daily across a various set of classes including amongst other 219,000 class 7 and 8 trucks. According to CARB, the combined effect from the ACT and ACF regulations will lead to approximately 0.5 million ZEVs on the road by 2035 in California, increasing to 1.6 million in 2050.   

About Hexagon Purus

Hexagon Purus enables zero emission mobility for a cleaner energy future. The company is a world leading provider of hydrogen Type 4 high-pressure cylinders and systems, battery systems and vehicle integration solutions for fuel cell electric and battery electric vehicles. Hexagon Purus’ products are used in a variety of applications including light, medium and heavy-duty vehicles, buses, ground storage, distribution, refueling, maritime, rail and aerospace.

Learn more at www.hexagonpurus.com and follow @HexagonPurus on Twitter and LinkedIn

Original article posted by Hexagon Purus on LinkedIn available here.