Hexagon Agility, the clean-fuel systems business of Hexagon Composites, has signed an exclusive three-year agreement with IVECO BUS to supply compressed natural gas (CNG) fuel systems for transit buses worldwide. The deal covers Hexagon Agility's fuel systems and Type 4 carbon fiber cylinders across IVECO's full CNG bus range, with first deliveries under the new agreement starting in the third quarter of 2026.

Deal terms

The agreement is exclusive, so IVECO will source its CNG fuel systems only from Hexagon Agility for the length of the contract. Hexagon Agility will build the systems at its facility in Kassel, Germany. For 2026, the company estimates annual revenue from deliveries to IVECO BUS, including work under this new agreement, at EUR 20 million, or about NOK 200 million.

A Type 4 cylinder is a natural gas storage tank built around a plastic liner wrapped in carbon fiber, lighter than older all-metal tanks.

A two-decade relationship

Hexagon Agility and IVECO have worked together for two decades and have delivered more than 10,000 buses together to date, according to Hexagon Agility. Eric Bippus, the company's chief commercial officer, said the new agreement "reinforces our role in supporting the continued improvement of global public transport systems" and that the fuel systems help fleets "reduce emissions and operator costs for transit fleets."

IVECO holds the leading position in natural gas commercial vehicles in Europe and in sustainable public transport, with a presence in Latin America, Asia Pacific, Africa and the Middle East.

The market behind the deal

Buses account for about 48% of public transport journeys worldwide, according to the International Association of Public Transport (UITP). CNG and biomethane, the renewable drop-in version of the fuel, cut bus emissions and operating cost now. In Europe, CNG and biomethane buses made up 7% of city bus registrations in 2025, according to T&E, a share that topped 20% in France, Greece and Italy. CNG sits alongside the electric and hybrid options fleets and authorities are weighing, with the choice increasingly specific to the application and the region.