The acquisition of Agility Fuel Solutions by Hexagon Composites ASA is expected by management to result in improved alternative fuel options for commercial vehicles, including school buses.
Agility Fuel Solutions supplies alternative fuel drivetrain systems—propane, CNG, LNG and hydrogen—and composite cylinders for medium- and heavy-duty commercial vehicles. Its 488LPI propane engine is used by Thomas Built Buses in its Saf-T-Liner C2 propane school bus.
Additionally, Agility’s natural gas engine recently received CARB certifications and is suitable for school bus use.
The focus of Norway-based Hexagon is clean energy. It provides composite pressure vessel technology for passenger vehicles, trains, and marine applications, as well as fuel transportation and storage solutions.
As a strong investor in Agility for the past two years, Hexagon currently owns 50 percent of the company and is expected to close the full acquisition deal by January. To date, the companies have partnered to deliver over 250,000 cylinders and 40,000-plus fuel systems worldwide.
“From a practical perspective in the near-term, no, it doesn’t change our strategic direction or our brand or our leadership,” said an Agility Fuels spokesperson. “There are going to be some longer-term benefits for all of our customers, including in the school bus market.”
Agility executives said the name would remain the same, while the business would continue as usual for the near future, after the acquisition closes.
The official statement explained that the “increasing alignment of economic and environmental benefits” is prompting more commercial vehicle fleets to incorporate alt-fuel into their operations. This, in turn, drives manufacturers to produce more vehicles and infrastructure offerings in propane, CNG, LNG, biogas and electric.
“By bringing together two leading players in clean energy, the two companies will become an even stronger force in driving energy transformation globally, by promoting the alternatives of natural gas, biogas, hydrogen, propane and electrification,” officials said.
“For our customers, this will provide Agility access to greater global resources and scale across a broad portfolio of sustainable energy technologies,” said Agility CEO Kathleen Ligocki.
“We believe the timing to be optimal,” Jon E. Engeset, president and CEO of Hexagon, explained. “Fuel price spreads are back at attractive levels, payback times are favorable, and the global focus on the environment has never been stronger. Our combined solutions portfolio and expert teams represent a unique value proposition to the markets.”