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Hexagon Composites Enters the CNG-for-rail Market with New Joint Venture

16 August 2016

Hexagon Composites' wholly owned subsidiary Hexagon Lincoln has entered into a joint venture agreement with Allegheny Creative Energy Solutions (ACES) and Resonance Mode, to create a new entity.

As the majority shareholder, Hexagon Composites will support the new entity to develop and manufacture compressed natural gas (CNG) fuel solutions for the rail industry.

"As pioneer of CNG-for-rail, we are very pleased to be joining forces with world-class manufacturer Hexagon Composites and innovative engineering firm Resonance Mode," says Ross Rowland, Chairman of ACES. "We are confident that CNG will become the railroad fuel of the future. Hexagon Composites' strength and capacity make it the only manufacturer able to meet the CNG storage demand."

ACES and Resonance Mode have experience with American railroads and have designed prototype CNG tenders, fuel storage, and trackside refueling systems with Hexagon Composites' bulk-capacity TITAN cylinders. The joint venture's primary focus will be the US market, but it will provide CNG rail solutions worldwide. CNG as the most economic fuel for locomotives will significantly reduce engine exhaust particulates and improve emissions in their surrounding communities.

"We see great opportunities in the global rail market, even with current oil prices," says Frank Häberli, Vice President, Mobile Pipeline, Hexagon Lincoln. "Long-term competitive fuel pricing and meeting reduced emissions requirements, especially for railroads operating in metropolitan areas, are very important market drivers for the adoption of CNG in this segment."

In addition to providing TITAN cylinders for tender cars carrying fuel for the largest (Class I) locomotives, Hexagon Composites provides on-board CNG cylinders for small and medium-size (Class II and III) locomotives.

 





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