Mitsui & Co subscribes for convertible bonds issued by Hexagon Purus, a Norwegian Company manufacturing hydrogen cylinders/systems, battery systems, and engaging in the vehicle integration business.
Mitsui & Co., Ltd. (“Mitsui”, Head Office: Tokyo, President and CEO: Kenichi Hori) has agreed to subscribe for convertible bonds worth 500 million Norwegian krone (approximately 6.6 billion yen) issued by Hexagon Purus ASA (“Purus”), a Norwegian company which engages in the manufacture of compressed type 4 hydrogen gas cylinders and systems used in fuel cell electric vehicles (FCEVs) and in the on-road distribution of hydrogen, and which is also involved in the vehicle integration business, and the manufacturing of battery systems for heavy-duty vehicles.
Mitsui has also concluded agreements concerning a new strategic alliance with Purus. In addition to pursuing joint projects with Purus, Mitsui will also explore future opportunities for additional investment when Purus implements capital increases.
Since 2016, Mitsui has been investing in and collaborating with Hexagon Composites ASA, the world’s leading manufacturer of carbon fiber reinforced plastic high-pressure gas cylinders. As a subsidiary of Hexagon Composites ASA, Purus has expertise in the manufacture of compressed hydrogen gas cylinders, the design of hydrogen supply systems using these cylinders, and commercial vehicle integration.
It has continually enhanced its technology development capabilities, while building a customer base as a business company engaged in the provision of decarbonization solutions for the mobility sector, especially hydrogen-based solutions.
Governments in Europe, the United States, and other parts of the world are currently taking concrete steps in response to climate change, including the establishment of subsidy programs, the introduction of restrictions on vehicles with internal combustion engines, and the provision of incentives for purchases of zero emission vehicles (ZEVs). One of these solutions is the use of FCEVs, especially for trucks, buses, and other commercial vehicles.
There is also likely to be increased demand for on-road distribution of hydrogen from the production site to the point of distribution. Purus plans to expand its manufacturing operations in Europe, North America, and other regions in readiness for these changes. Mitsui will provide support for obtaining the funds needed for capital expenditure by Purus through subscription of the convertible bonds and by other means.
Mitsui will also leverage its strategic alliance with Purus to create new business opportunities relating to decarbonization in the mobility sector in collaboration with Mitsui’s business and customer bases. In addition to raising the enterprise value of Purus, Mitsui will also contribute to the shift to zero-emission mobility, including not only commercial vehicles, but also in the maritime, rail, and aviation sectors.
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Mitsui & Co. Subscribes for Convertible Bonds Issued by Hexagon Purus, a Norwegian Company Manufacturing Hydrogen Cylinders/Systems, Battery Systems, and Engaging in the Vehicle Integration Business, March 2, 2023
