Hexagon Annual Report 2019

57 2019 AT A GLANCE FROM THE BOARD ROOM FINANCIAL STATEMENTS Sustainability Report E-MOBILITY, ENABLING THE ZERO-EMISSION FUTURE Hexagon, through its subsidiary Hexagon Purus, is a world leading e-mobility systems provider, developing battery electric and hydrogen fuel cell electric technologies. Diversified hydrogen project pipeline Hexagon Purus is currently involved in over 50 hydrogen development projects with various customers across a range of mobility and storage applications. This includes light-duty vehicles, heavy-duty vehicles, distribution, refueling stations, marine applications, trains and aviation. To learn more, read page 26-27 in Hexagon’s 2019 Annual Report. Hydrogen costs to fall sharply and sooner than expected According to a recent study conducted by the Hydrogen Council, which Hexagon is a member of, and McKinsey & Company the cost of hydrogen can fall sharply and sooner than expected. This will be driven by the scale-up of hydrogen production, distribution, as well as equipment and component manufacturing. The cost is projected to decrease by up to 50% by 2030 for a wide range of applications, making hydrogen competitive with other low carbon as well as some conventional alternatives 2) . Expanding battery electric (BEV) solutions Hexagon Purus is also involved in several ongoing pilot programs for the delivery of battery packs and complete electric vehicle drivetrain integrations for medium-and heavy-duty trucks. So far, Hexagon Purus has delivered battery packs and electric drivetrain integration to over 30 heavy-duty trucks. These trucks have already logged more than 100,000 miles (approx. 160,000 km) driven in daily operations. LPG - IMPROVING PEOPLE’S QUALITY OF LIFE In the least developed countries (LDCs) 3) many people, particularly women, cook using wood, charcoal, animal dung or kerosene. These fuels produce hazardous particu- lates (soot) and air pollution that cause illnesses that the World Health Organization (WHO) estimates kill 4 million people prematurely each year 4) . The majority of people affected are the poorest members of developing nations. LPG use on the other hand produces practically no particulates and the CO2 footprint is 20% lower than that of heating oil and 50% lower than coal 5) . Hexagon Ragasco participates in organized clean cook- ing alliance and cooking for life programs to promote the use of easy to handle composite cylinders across the LDCs. The lightweight and user-friendly attributes of the cylinders enable people, particularly women to spend less time cooking and gathering fuel and therefore more time on education and income generation. Hexagon Ragasco delivered over 40% of all its LPG cylinders to LDCs, up significantly from 2018. Status and target Each of Hexagon’s business areas have identified and calculated their positive contributions to Hexagon’s vision and purpose. Going forward Hexagon intends to set specific impact targets for all business areas. Mobile Pipeline® Renewable natural gas Anaerobic digester Bio waste Did you know: Capturing the methane from the waste of 7,900 pigs is comparable to removing CO2 emission from 1,000 passenger cars 1) . 1) California Air Resource Board and Hexagon own calculation 2) Hydrogen Council, Path to Hydrogen Competitiveness 3) United Nations Committee for Development Policy 4) World Health Organization, Household air pollution and health 5) World LPG Association