Nel ASA Secures ~$20M Collins Aerospace Orders for Submarine PEM Stack
Nel ASA has expanded its role in the specialized submarine market after receiving additional purchase orders from Collins Aerospace for PEM electrolyser stacks. The latest orders bring the value of Nel's submarine-related order intake from Collins Aerospace to approximately $20 million in Q3 2026, with programs spanning the United States, United Kingdom and France.
The equipment will support submarine life-support systems, where reliable oxygen generation is a critical requirement. Deliveries under the new orders are expected throughout 2027 and 2028, with the stacks manufactured at Nel's Wallingford, Connecticut facility.
Collins Aerospace Orders Strengthen Nel's PEM Business
The latest business builds on a long-running relationship between Nel and Collins Aerospace. Nel has supplied PEM electrolyser stacks for submarine applications for several years, including systems used to generate oxygen for critical life-support operations.
The September 30 announcement states that the newly received orders related to US, UK and French naval programs have a value of approximately $7 million. Combined with a $12 million Collins Aerospace purchase order announced on September 29 and smaller orders received earlier in September, the submarine-related order intake reaches approximately $20 million.
This sequence of orders gives Nel additional visibility into demand for its PEM stack technology while reinforcing the company's position in a highly specialized application.
Why PEM Electrolysers Matter for Submarine Life Support
PEM electrolysis uses electricity to split water into hydrogen and oxygen. In submarine life-support systems, the oxygen generated through electrolysis can support onboard atmospheric management for crew operations.
Submarine environments place demanding requirements on equipment. Systems must operate reliably for extended periods while occupying limited space and supporting critical onboard functions.
Nel highlights several characteristics that are relevant to this market:
Compact equipment: Space efficiency matters in submarine environments where onboard systems compete for limited available volume.
Operational reliability: Life-support applications require dependable equipment because oxygen generation directly supports crew requirements.
Long service life: Naval platforms operate over extended periods, increasing the importance of durable equipment and established maintenance capabilities.
Specialized manufacturing: Nel produces the stacks for these applications at its Wallingford facility in Connecticut.
These requirements make submarine applications different from large industrial hydrogen projects, where equipment scale and overall hydrogen production capacity often dominate procurement decisions.
US, UK and French Naval Programs Expand Market Reach
The latest Collins Aerospace orders connect Nel's PEM stack business with submarine programs in three major naval markets. This gives the company exposure across North American and European defense supply chains.
Nel's maritime business already includes work involving US and UK Navy submarine applications. The company says its electrolyser stacks produce life-support oxygen for US and UK Navy crews on multiple classes of nuclear-powered submarines.
The addition of French naval programs broadens the geographic scope of the latest order intake. For suppliers of specialized electrolyser equipment, participation in multiple national programs can create longer-term opportunities while requiring compliance with different procurement, engineering and supply-chain requirements.
Delivery Schedule Extends Into 2028
The orders are not limited to an immediate equipment shipment. Nel expects deliveries from the latest orders to take place during 2027 and 2028, creating a multi-year delivery schedule for the PEM stacks.
For procurement teams, this type of schedule highlights the importance of production planning and supplier continuity. Specialized electrolyser stacks for naval applications cannot necessarily be sourced in the same way as standardized industrial equipment.
The manufacturing location also provides an important supply-chain reference. Nel has stated that the stacks covered by the orders will be manufactured at its Wallingford, Connecticut facility.
Specialized PEM Demand Adds to Nel's Order Pipeline
The submarine orders arrive as Nel continues to develop its broader PEM electrolyser business. In its second-quarter 2026 results, the company reported NOK 230 million in total order intake, with 96% related to PEM. Its PEM order backlog stood at NOK 990 million at the end of the quarter.
The Collins Aerospace business represents a different demand profile from large-scale hydrogen projects. Instead of focusing primarily on megawatt-scale hydrogen production, submarine applications require compact stacks designed around specific operational requirements.
What the Orders Mean for Electrolyser Supply Chains
The Collins Aerospace orders demonstrate how electrolyser manufacturers can serve specialized markets beyond conventional hydrogen production. Naval applications create demand for equipment that combines electrochemical performance with strict reliability and space requirements.
For chemical traders, equipment suppliers and industrial procurement teams, the development points to several areas worth monitoring:
PEM stack demand: Continued orders for specialized PEM stacks could support demand for associated membranes, catalysts, electrodes and other electrolyser components.
Defense-linked supply chains: Naval programs can generate long-duration procurement requirements that differ from commercial hydrogen projects.
Regional manufacturing: The Wallingford production site provides a US manufacturing base for these specialized stacks.
Multi-year deliveries: Orders extending through 2027 and 2028 can create longer-term visibility for suppliers supporting the equipment chain.
The market also shows why procurement decisions for electrolysis equipment increasingly depend on the intended application. A stack designed for a specialized marine environment may face different technical and commercial requirements than equipment deployed in a large renewable hydrogen plant.
Nel's PEM Manufacturing Footprint Supports Specialized Applications
Nel's Wallingford operation has been central to its PEM manufacturing activities for submarine programs. The company has previously received Collins Aerospace orders for US Navy submarine applications, including a $6 million order announced in March 2025.
Nel has also continued to develop its broader PEM manufacturing and integration capabilities. In September 2026, the company announced a framework agreement with Hydrasun covering assembly and integration of its MC Series PEM technology in Europe, while PEM stack production remains at the Wallingford facility.
This combination of established stack manufacturing and expanded integration capabilities gives Nel a broader platform for serving different PEM markets.
What Procurement Teams Should Watch
For buyers and suppliers tracking hydrogen equipment markets, the latest Collins Aerospace orders provide several useful signals. The first is the continued use of PEM electrolysis in applications where reliability and compact design are critical.
The second is the growing diversity of end markets for electrolyser technology. Industrial hydrogen production remains an important application, but marine, defense and other specialized sectors can create additional demand for PEM stacks.
Procurement teams evaluating suppliers should pay attention to:
Application-specific experience: Suppliers with established experience in demanding operating environments can offer capabilities beyond standard equipment specifications.
Manufacturing capacity: Multi-year programs require confidence that production can support scheduled deliveries.
Component availability: PEM stacks depend on specialized components, making supply-chain resilience an important procurement consideration.
Delivery planning: Programs extending into 2028 require early coordination between equipment manufacturers, integrators and end users.
Technical support: Specialized applications may require closer cooperation between stack manufacturers and system integrators throughout the project lifecycle.
Outlook for PEM Electrolyser Demand
Nel's latest orders show that PEM electrolysis continues to find applications outside conventional hydrogen production projects. The approximately $20 million Collins Aerospace order intake for submarine programs provides a clear example of how established PEM technology can serve highly specialized requirements.
The deliveries scheduled for 2027 and 2028 also demonstrate the longer procurement cycles associated with naval equipment. For the broader hydrogen supply chain, these projects could support continued demand for PEM stacks and related components while encouraging suppliers to develop capabilities for specialized applications.
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