Hexagon Purus secures up to CAD 8.5 million in funding from Canadian authorities to further develop its leading battery electric vehicle technology

12 Jul 2024 07:16 CEST

Hexagon Purus has secured up to CAD 8.5 million from The Commercial Vehicle
Innovation Challenge (CVIC) in British Columbia, Canada. The funds will support
labor and capital expenditure to further develop its leading battery electric
vehicle technology for the Tern RC8. The grant is launched under CleanBC Go
Electric's Advanced Research and Commercialization (ARC) program which aims to
support growth in BC's zero-emission vehicles industry and to create jobs.

The funding, subject to certain milestone criteria being met, will be used at
Hexagon Purus' facility in Kelowna for the Tern RC8, a groundbreaking battery
electric Class 8 truck tailored for the North American market. The truck will be
exclusively distributed by Hino Motors, and the distribution agreement foresees
up to 10,000 trucks to be delivered by 2030. The project is expected to result
in approximately 40 new positions in Kelowna.

"Hexagon Purus began operations in Canada in January 2020, and since then we
have grown from 20 employees to approximately 100 over the past three years. We
are delighted to have secured this funding which will support labor and material
costs of our battery electric products and technologies in North America to
accelerate zero-emission mobility." says Todd Sloan, Executive Vice President of
Battery Systems and Vehicle Integration, Hexagon Purus.

Driving Energy Transformation

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.

Contacts

Eli Turander, Global Communications Director, Hexagon Purus
Telephone: +47 953 35 795 | eli.turander@hexagonpurus.com
(mailto:eli.turander@hexagonpurus.com)

Mathias Meidell, Investor Relations Director, Hexagon Purus
Telephone: +47?909 82 242 | mathias.meidell@hexagonpurus.com

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

About The Commercial Vehicle Innovation Challenge

The Commercial Vehicle Innovation Challenge (CVIC; the Challenge), launched
under CleanBC Go Electric's Advanced Research and Commercialization (ARC)
program, is a funding initiative with a vision to address technology gaps in the
commercial vehicle sector, support growth in B.C.'s zero-emission vehicles (ZEV)
industry and create jobs through B.C. innovation. CVIC supports projects that
advance commercialization activities in B.C.'s ZEV sector and produce
collaborative, industry-demanded projects that have significant benefits for
B.C.

This information is subject to the disclosure requirements pursuant to Section
5-12 the Norwegian Securities Trading Act

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