The US Navy Just Placed a $12M Bet on Norwegian Electrolysis Tech

Norwegian hydrogen technology company Nel has secured a $12 million order for PEM electrolyzer stacks for a highly specialized application: generating oxygen for life-support systems used aboard U.S. Navy submarines.

The order was placed by Collins Aerospace, which supplies technologies for aerospace and defense applications. Nel Hydrogen US, Nel ASA's U.S. subsidiary, announced the purchase order on September 29, 2026. The equipment will be manufactured at Nel's facility in Wallingford, Connecticut, with deliveries expected throughout 2027 and 2028.

PEM Electrolyzers Will Generate Oxygen Underwater

The technology being supplied is based on proton exchange membrane (PEM) electrolysis.

Unlike conventional hydrogen-production applications, the submarine system is focused on producing oxygen. Electrolysis uses electricity to split water into hydrogen and oxygen, allowing oxygen to be generated onboard without relying on external atmospheric supplies.

For submarines, reliable oxygen-generation equipment is an essential part of maintaining habitable conditions during extended underwater operations.

Nel says its Wallingford team has supplied this specialized application for many years, highlighting the long operating history behind the technology.

Why the $12 Million Order Matters

The contract is relatively small compared with large commercial electrolyzer projects, but its importance lies in the critical nature of the application.

Submarine life-support systems demand high reliability, long service life and operational resilience. A failure in oxygen-generation equipment can have consequences far beyond the economics of a conventional industrial hydrogen plant.

Nel specifically highlighted reliability and long-term performance as key requirements for the defense application.

The order therefore gives Nel another reference for PEM technology operating in a demanding defense environment.

Collins Aerospace Extends a Long-Standing Relationship

The new purchase order extends an existing relationship between Nel and Collins Aerospace.

According to Nel, the Wallingford team has been supplying electrolyzer technology for this specialized submarine application for many years. The latest order indicates continued demand for the equipment across naval programs.

Collins Aerospace operates across aerospace and defense systems, while Nel specializes in hydrogen and electrolysis technologies. Their cooperation connects a hydrogen technology supplier with a defense contractor that integrates the equipment into submarine life-support systems.

The Equipment Will Be Made in Connecticut

Although Nel is headquartered in Norway, the order will be fulfilled by its U.S. subsidiary.

The PEM stacks will be manufactured at Nel's Wallingford, Connecticut facility. Deliveries are scheduled across 2027 and 2028.

This domestic manufacturing element is significant for defense applications because supply-chain resilience and local production capabilities can be important considerations for critical military equipment.

Nel's Submarine Business Is Growing

The $12 million order is also part of a larger wave of naval business for Nel.

Just one day after announcing the U.S. submarine order, Nel disclosed approximately $7 million in additional purchase orders from Collins Aerospace covering submarine programs associated with the United States, United Kingdom and France.

Together with the $12 million U.S. order and smaller orders received earlier in September, Nel said its submarine-related order intake from Collins Aerospace had reached approximately $20 million during the third quarter of 2026.

The additional orders are also scheduled for delivery during 2027 and 2028.

PEM Technology Finds a Different Role in Defense

PEM electrolysis is commonly associated with green hydrogen production, where electricity from renewable sources is used to produce hydrogen for industrial applications.

The submarine application demonstrates another use of the same basic electrochemical technology.

Here, the value comes from producing oxygen on demand from water while operating within a tightly controlled life-support system.

The application also illustrates why PEM technology can be attractive where compact equipment, responsive operation and high reliability are important.

The U.S. Defense Market Could Open Another Growth Channel

The submarine orders give Nel exposure to a market that differs from conventional hydrogen projects.

Commercial hydrogen projects are often evaluated around electricity prices, hydrogen offtake agreements, electrolyzer utilization and project financing. Defense applications instead place much greater emphasis on reliability, service life, qualification requirements and the ability to operate under demanding conditions.

Nel said the latest order reflects growing momentum for its technology in defense applications and continued demand for its PEM manufacturing capabilities.

For electrolyzer manufacturers facing uncertainty in some large-scale commercial hydrogen markets, specialized applications such as naval oxygen generation can provide an additional source of demand.

Deliveries Begin in 2027

The newly ordered stacks are scheduled to be delivered throughout 2027 and 2028.

Manufacturing will take place at Nel's Wallingford facility, while Collins Aerospace will use the equipment as part of submarine life-support systems.

The project therefore represents a specialized intersection of electrolysis, hydrogen technology, oxygen generation and defense infrastructure, with an established Norwegian technology company supplying equipment manufactured in the United States.

Sources:

https://nelhydrogen.com/press-release/nel-asa-receives-purchase-order-from-collins-aerospace-for-us-navy-stacks/?