BIOGAS ASIA PACIFIC FORUM 2015

THE MOBILE PIPELINE

TC Goh, Regional Sales Director Asia Pacific

THE NEXT 30 MINUTES “COMPRESSED”….

• Our company

• The mobile pipeline

• Industrial and commercial

• Oil & Gas exploration

• NGV Daughter Stations

• Safety in Transportation

2

INTRO

APPLICATIONS

SAFETY

HEXAGON COMPOSITES GROUP

Global leader in the composite pressure vessel industry

• Composite LPG cylinders produced by Hexagon Ragasco in Norway and Russian JV RUGASCO

• Composite high-pressure CNG and H2 cylinders for medium/heavy duty and gas distribution systems produced by Hexagon Lincoln in USA

• Composite high-pressure CNG cylinders for automotive produced by Hexagon Lincoln in Norway

• Bus roof top systems produced by Hexagon Bus Systems in Norway

CNG service centers/partners in Indonesia/Thailand/Sweden/Mexico/Russia/Australia

STRONG FINANCIAL IN A GROWING INDUSTRY

OPERATING REVENUES NOK Million

112 176

290 300 318

425

561 599

787 868 846

992

854

1280

[VALUE]*

183*

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

BUILDING VOLUME AND ACQUSITIONS FOCUSING ON SPECIALISATION

AND CORE BUSINESS

BUILDING NO. 1

GLOBAL POSITION

* Marked area in 2012 and 2013 represents revenue in Composite

Reinforcements, which was divested in January 2014

www.hexagon.no

RAGASCO

RAUFOSS

FUEL SYSTEMS

LINCOLN

COMPOSITES

COMROD

POWER

AND LERC

COMROD

COMPOSITE

SCANDINAVIA

Acquisitions Divestments

HEXAGON

DEVOLD

Lincoln Composites

Established 1963

Devold AMT

Established 1992

Ragasco

Established 1998

4

A STRONG AND GROWING COMPANY

• Fully automated

production lines

• 80.000 heavy duty and

1.600 TITAN™ cylinder

capacity in Lincoln per

year

• JV with AGILITY – US

largest truck converter

• 150.000 passenger car

cylinder capacity in

Norway per year

• 2 Mio LPG cylinder

manufacturing capacity

in Norway per year

Largest composite cylinder manufacturer for CNG

and Hydrogen applications globally

HEXAGON CYLINDER HISTORY

• Experience in Type 3

and Type 4 cylinder mfg.

• TUFFSHELL® was the

first Type 4 to be certified

to ANSI/AGA NGV2 in

1993

• Shifted production from

Type 3 and 4 to all Type

4 cylinders in 2005

• TITAN™ launched in

2010 and is largest

composite commercial

pressure vessel in the

world

• Over 300.000 Type 4

CNG cylinders in global

service 20 years commercial production of type 4 cylinders

THE MOBILE PIPELINE

BIOGAS IS “CNG”

Raw Biogas from

feedstock

Raw Biogas pretreatment

-removal of H2S

Biogas processing

-removal of CO2

Biomethane (close to NG

specifications)

Compressed to 250bar

Transport to End-user or

pipe into existing gas

pipeline

THE SIMPLE BUSINESS

Pipeline Gas

Trailer

You don’t have this? Well, then you need this!

STEEL TO COMPOSITE – THE EVOLUTION

scm NG

Weig

ht

of sto

rage p

er

scm

Type 1 Steel

bottle trailer

3,000 scm

@ 200 bar

Type 1 Steel tube

trailer

5,200 scm

@ 250bar

Type 4 TITAN™

XL

14,300 scm

@ 250 bar

Type 4 TITAN4™

10,000 scm

@ 250 bar

Note:

Large composite tank is the future

TITAN4™

• 10,040 scm @ 250 bar

• 4 composite tanks

• Each tank 8,500 l

• Intermodal ISO 40´container

• Gross weight 23 tons

• US DOT & ABS approval

TITAN™ XL

• 14,670 scm @ 250 bar

• 12 composite tanks

• 40´trailer

• ABS approval

• Gross weight of 31.8 tons

20FT SMARTSTORE™

• 6,490 scm @ 250 bar

• 14 composite tanks

• each 1,545 l

• HC 20´container

• Gross weight 14 tons

• US DOT & ABS approval

13

10FT SMARTSTORE™

• 2,700 scm @ 250bar

• 20 composite tank

• HC 10´container

• Horizontal arranged tanks

• Safe & ease of access

14

MOBILE PIPELINE APPLICATIONS

INDUSTRY & COMMERCIAL – SOLID SAVINGS

• Total savings on fuels

in average 20 to 40%

to prior use

• Flexibility in fuel

supply can be

maintained

Pond Heating 24 MMBTU

3831 DGE/day

Steam Generation 28 MMBTU

4500 DGE/day

HIGH HORSEPOWER:

OIL & GAS WELLS HEATING (UNITED STATES)

Typical distance to mother station <150 miles(241km)

Typical fuel displacement heating and fracturing at well site 2000 – 6,000 DGE/D (7,700-23,000m3/day_

Trican/ Sanjel QSK 60

1980 to 4160 DGE/day per pumper (7,700-16,100cm3/day)

(10-12 pumper per fleet)

HIGH HORSEPOWER:

HYDRAULIC FRACTURING(UNITED STATES)

PD 530, 534/ Jomax 9 / Fox 3 & 4

Triple AC

1480 to1850 DGE/day (5,700-7,200m3/day)

Typical distance to mother station <150 miles (241km)

Typical fuel displacement 1000-2500 DGE/day

HIGH HORSEPOWER:

OIL & GAS WELLS DRILL RIGS (UNITED STATES)

FLARE CAPTURE BY MOBILE PIPELINE

20

• Flexible collection of lean

gas with light weight 40´

(and in future 20´)

transportation units

• Corrosion free liner

materials

POWER GENERATION: EDL (AUSTRALIA)

• Yulara Power Station (4.5MW)

• 440km from Palm Valley-Alice Springs to

Uluru

• Significant savings in fuel (over 20-30%)

• Operation since 2006

SUPPLY TO NGV DAUGHTER STATIONS

22

Emerging countries

• Conventional fuels are

heavily subsidized

• Often possess large NG

resources

• Need to expand NGV

refuelling fast

• Congested metropolitans

make pipeline installation

difficult and expensive

• Mobile pipeline and mobile

refuelling is the solution

IN 2015- TITAN WILL BE MOVING LANDFILL GAS

HELP TO CONVERT TRASH CITY NOVO GRAMACHO

TO GREEN ENERGY CENTER IN BRASIL

COMPOSITES IN REMOTE CNG DISTRIBUTION

24

Since 2010 over 400 TITAN™s have

been commissioned globally

COST BENEFITS

STEEL OR COMPOSITE – CAPEX VS OPEX

scf NG per day

dis

tance t

o c

lient

Steel

CNG

trailers

Composite

CNG trailers

26

Light weight high strength composites

enable the economic market reach of NG

beyond prior boundaries

LNG trailers

OPEX VS. CAPEX

CAPEX

Depreciation

OPEX

Less fuel

Fewer drivers

Less maintenance

Lower retesting cost

Composite Steel

COST OF CNG DELIVERED 100 K SCM PER DAY/100 KM DELIVERED

Profit CNG

USD/MMBTU

Overhead/

Financing

2,0 11,0

1,0

Molecule

2,0

Depre-

ciation

Decom-

pression

0,5

Transport

1,0

Transmission

&

Compression

1,5

3,0

18%

9%

9%

14%

27%

100%

BASED ON NATURAL GAS PRICES IN NA

FUEL PRICE (INDUSTRIAL) IN MALAYSIA

0

5

10

15

20

25

LFO HFO Piped NG Diesel BioCNG

US

D/m

mb

tu

Type of Fuel

SAFETY IN TRANSPORTATION

EASE OF USE & MAINTANANCE

4 TANKS – 4 VALVES – LESS PIPING - LESS CONNECTIONS - NO LEAK

NOTE:

HIGH PERCENTAGE OF LEAKAGES HAPPENED IN CONNECTIONS & PIPING

Dip Tube inside

each cylinder to

draw out water,

compressor oil

EFFECTIVE TANK MAINTENANCE

EASY DRAINAGE OF OIL/FLUIDS FROM INSIDE

SAFETY – DRIVE AWAY PROTECTION AND

FILL HOSE RUPTURE CONTROL

33

• Remotely operated flow

shut off

• Trailer brake interaction

• «Next generation»

automatic shut off

systems in development

Large composite tanks

enable high safety standards

at lower cost

FIRE SAFETY – AUTOMATIC GAS EVACUATION

34

• Detection systems encompass the entire

container/trailer

• Full evacuation when detecting temperatures

exceeding 226 degree F

• Central venting to top of unit

SAFETY - ROLLOVERS

• Closed tank valves during transport

• Solid frame structure

• Low center of gravity

• Safe vent procedures

• Trained first responders

• Qualified reinspection

NO LEAK OF GAS

CLOSE TANK VALVE DURING TRANSPORT

Accident of TITAN Module for CNG transport at Srisakat province

TITAN Module turn side down By side of the local street

Hart attached by turn side down daring driving speed 48km/hour

TITAN™ SAFETY VIDEO

TITAN™ SAFETY VIDEO

38

• 40 mm grenade attack

• 300 psi tank pressure

• No leak

• Max. damage 15%

of composite thickness

INCIDENT TESTING OF TITAN™

WHY USE HEXAGON MOBILE PIPELINE?

• LIGHTER WEIGHT (70% lighter)

Fuel savings

Less maintenance (wear & tear of tyres etc)

• LARGER PAYLOAD

Reduce number of trips

Reduce drivers/manpower

Reduce risk (accidents)

Stable supply of CNG

• SAFETY

No fatigue

Mini burst pressure of 600bar

Superior crash performance

• NO CORROSION

• VISUAL INSPECTION

(no hydraulic retesting required)

• LONGER LIFESPAN of 20 years

Move Gas – not steel

OUR EXPERIENCE IN GAS TRANSPORTATION

Australia

• Over 40 SMARTSTORE™ modules in

operation from 2006

South-East Asia

• Road Trains with TUFFSHELL® cylinders

(530 L WC) in operation since 2006

• Over 150 TITAN™ modules in

operation

• Over 100 TITAN™ modules in operation

• DOT approval in Q1, 2012

Latin America

North America

• First units delivered in Q3, 2012

• Over 160 TITAN™ modules in operation

Scandinavia

• ADR/TPED approved.

SMARTSTORE™ modules

biogas transport

• In use since 2009

THANK YOU!

41 www.hexagon.no