Hexagon Composites receives special permit from the U.S. DOT

The U.S. DOT (Department of Transport) has granted Hexagon Composites' business unit Lincoln Composites a special permit that authorizes the manufacture, marking, sale and use of its TITAN(TM) transport modules in the U.S.

The special permit gives Lincoln Composites the ability to effectively enter the bulk hauling market in the United States with cylinders from 450L to 8500L in volume, which includes the company's bulk hauling models SMARTSTORE(TM), TITAN(TM) and TITAN5(TM).  The special permit authorizes use of the world's largest commercial composite cylinders in the market of transportation of compressed gases, including natural gas, hydrogen, and certain inert gases. Modes of transportation authorized include motor vehicle, rail freight, and cargo vessel.

Jack Schimenti, Lincoln Composites Managing Director: "The DOT special permit provides a clear path for the US market to reap the same benefits that our international customers have realized in places such as Malaysia and Colombia. The customer base in the US believes that this special permit is a game-changing moment relative to this market. Using composite technology means significant payload increases while reducing the weight of the trailers and that means lower operating costs for bulk gas transportation in the US. Even with significant pipeline networks in the US, there are still many factories located off the pipeline grid that will realize significant cost savings by switching to natural gas for their power generation needs. The Lincoln Composites bulk-hauling solutions are exactly what these customers need."

In the United States, market interest in natural gas as alternative energy is growing because of the large price difference between gas and oil. The international interest in natural gas remains strong and since DOT approvals and special permits are well recognized internationally Hexagon Composites hopes that this can facilitate other international approvals for TITAN(TM). The company expects moderate growth for TITAN(TM) in the U.S for 2012.

TITAN(TM) is approved through national control bodies, and is so far approved and sold in Vietnam, Malaysia, Colombia, the Dominican Republic and Peru. The modules have also been approved for use in Thailand and Indonesia.

Lincoln Composites' high-pressure composite cylinders for bulk hauling ensure safe and simple transportation in ISO container form. The modules provide a capacity increase allowing transport of twice as much gas as conventional steel solutions reducing the overall gross vehicle weight by several metric tons. The large capacity of the modules allows the gas distributors to deliver more gas per trip, thereby reducing the operating costs of their gas delivery projects.

The special permit is valid until 31 December 2013 with possibility of renewal.

For further information, please contact:
Erik Espeset, Group President, Hexagon Composites ASA
Telephone: +47 90 52 00 33 | E-mail: erik.espeset@hexagon.no

Jack Schimenti, Managing Director, Lincoln Composites
Telephone: +1 402 470 5044 | E-mail: jschimenti@lincolncomposites.com

Solveig D Saether, Communications Manager, Hexagon Composites ASA
Telephone: +47 70 11 64 45 | E-mail: solveig.saether@hexagon.no