Nel ASA Wins a $12M Order for Submarine Oxygen-Generation PEM Stacks
Nel ASA Wins a $12M Order for Submarine Oxygen-Generation PEM Stacks
Nel Hydrogen US, a subsidiary of Nel ASA, has secured a purchase order worth approximately $12 million from Collins Aerospace for proton exchange membrane (PEM) electrolyser stacks destined for US Navy submarine life-support systems. The stacks will generate oxygen onboard; deliveries are scheduled across 2027 and 2028 and will be manufactured at Nel’s facility in Wallingford, Connecticut. The award extends a long-standing cooperation with Collins Aerospace on this specialised application and adds to a broader set of recent submarine-related orders that, in aggregate, bring Nel’s recent intake from the same customer to around $20 million.
Application: Oxygen for Submarine Life Support
On submarines, electrolysers split water into oxygen and hydrogen using electrical power. The oxygen supports the crew’s breathing atmosphere; the hydrogen is typically managed or vented according to naval system design. Reliability and long service life are non-negotiable: failure of oxygen-generation equipment has direct safety consequences. Nel’s PEM stacks have been supplied into this niche for multiple years, giving the Wallingford team an established track record that the company cites as a key reason for continued orders.
Order Scope and Timeline
The $12 million purchase order covers PEM stacks for US Navy programmes. Manufacturing will take place in Connecticut, with deliveries phased through 2027 and 2028. Shortly after the main announcement, Nel reported additional purchase orders from Collins Aerospace related to US, UK and French naval programmes, valued at about $7 million, bringing the recent submarine-related total from this customer to roughly $20 million. All of these orders are expected to be booked as order intake in the third quarter of 2026.
Strategic Context for Nel
While much of the electrolyser industry’s narrative has focused on large-scale green hydrogen for industry and energy, specialised defence and life-support applications offer a different demand profile: smaller volumes, high reliability requirements, long qualification cycles and relatively stable, multi-year procurement. Nel has highlighted growing momentum for its PEM technology in defence applications, where operational resilience and product lifetime are decisive. The Collins orders also contribute to a broader recovery in PEM order intake reported by the company in 2026.
Manufacturing and Technology Fit
PEM electrolysers are well suited to applications that require compact footprint, rapid response and high purity oxygen. Nel’s Wallingford plant has the experience and quality systems needed for naval-specification hardware. Continuing to win and execute these orders helps keep specialised manufacturing capacity utilised and reinforces the company’s position in a niche that is less exposed to the boom-bust cycles of large industrial hydrogen projects.
Implications for the Electrolyser Market
Defence and naval oxygen generation will not replace multi-gigawatt green hydrogen demand in volume terms, but it provides a high-value, technically demanding outlet for PEM technology. Success in this segment depends on proven reliability, security of supply and the ability to meet stringent qualification and documentation requirements. For competitors, the repeated awards to Nel underline the importance of long-term customer relationships and domestic manufacturing capability in regulated defence supply chains.
Outlook
The $12 million Collins Aerospace order for submarine oxygen-generation PEM stacks, together with related naval programme awards, strengthens Nel’s defence-related order book and confirms ongoing demand for its Wallingford-manufactured stacks through 2027–2028. Execution will centre on on-time delivery and continued performance in service. For Nel, the awards illustrate that specialised, high-reliability applications remain a meaningful commercial line alongside the larger and more volatile industrial hydrogen market.
Sources
Aluminium Stearate
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