Hexagon Agility will become the exclusive supplier of compressed natural gas (CNG) fuel systems for IVECO BUS under a new three-year global agreement that strengthens a partnership spanning more than two decades.
The agreement covers IVECO BUS's entire range of CNG and biomethane-powered transit buses sold worldwide. Hexagon Agility will supply complete fuel storage systems featuring its Type 4 carbon fiber cylinders, which are designed to reduce weight while increasing fuel capacity compared with traditional steel tanks.
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The latest contract builds on a relationship that has produced more than 10,000 natural gas buses for transit operators around the world.
While battery-electric buses continue to dominate many transit electrification discussions, CNG remains an important option for agencies seeking lower-emission vehicles without the charging infrastructure or operational constraints associated with battery-electric fleets. Renewable biomethane, which can be used in the same vehicles without modification, offers an additional pathway to reducing lifecycle greenhouse gas emissions.
A compressed natural gas (CNG) fuel system is displayed alongside an IVECO BUS transit bus.Hexagon Agility
"Transit agencies are being asked to do more than ever before," said Eric Bippus, chief commercial officer of Hexagon Agility. "They need to reduce emissions, manage costs, improve fuel supply resilience and deliver reliable service. We're seeing agencies adopt portfolios that combine battery-electric and natural gas-powered buses, matching the right technology to the needs of each route and region."
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IVECO BUS is Europe's largest manufacturer of natural gas buses and markets its transit vehicles across Europe, Latin America, Asia-Pacific, Africa and the Middle East. The agreement further solidifies Hexagon Agility's position as a leading supplier of CNG fuel storage systems for commercial vehicles and public transit fleets.
Natural gas buses continue to maintain a foothold in several global markets despite growing investment in battery-electric transportation. According to the International Association of Public Transport, buses account for approximately 48 percent of all public transportation journeys worldwide, making fleet decarbonization a priority for many transit agencies.
Industry data from Transport & Environment shows CNG and biomethane buses accounted for roughly 7 percent of new city bus registrations in Europe during 2025. The technology remains particularly popular in France, Greece and Italy, where natural gas-powered buses represented more than one-fifth of new registrations.
Outside Europe, adoption of CNG and renewable natural gas buses continues to expand in Latin America, Asia-Pacific, Africa and the Middle East, where existing natural gas infrastructure and lower operating costs continue to support demand.
For Hexagon Agility, the agreement secures a key position in the global transit market as bus manufacturers and fleet operators increasingly pursue multiple powertrain technologies to meet emissions reduction goals while maintaining operational flexibility.
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