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Nel ASA expands footprint in specialized maritime hydrogen applications with new submarine orders

Executive summary: Nel Hydrogen US, a division of Nel ASA, secured additional purchase orders from Collins Aerospace for PEM electrolyser stacks intended for submarine life-support systems. This confirms the commercial traction of Nel's Proton Exchange Membrane (PEM) technology in highly specialized, mission-critical defense applications.

Who is involved: Nel ASA (Nel Hydrogen US) and Collins Aerospace.

Likely next: Further order volume updates and potential expansion into other specialized maritime or defense sectors.

Nel ASA's US subsidiary has secured additional purchase orders from Collins Aerospace for PEM electrolyser stacks that will be used in US Navy submarines to generate oxygen for life-support systems. The same period saw the company enter a framework agreement with Hydrasun, positioning the European firm as an integration partner for Nel's PEM electrolyser solutions. These moves underline a clear strategic shift toward supplying high-reliability hydrogen technology to specialised maritime and defence customers, a segment that values proven performance over volume. The defence market's emphasis on safety and operational continuity creates a steady demand for electrolyser stacks that can operate reliably in confined, harsh environments. By addressing this niche, Nel ASA reduces its reliance on the more cyclical green-hydrogen industrial sector and opens a revenue stream that is less sensitive to commodity price swings. The partnership with Hydrasun further extends Nel's reach across Europe, potentially easing project execution and after-sales support for future maritime hydrogen installations. In the near term, the additional Collins Aerospace orders are expected to translate into tangible deliveries within the next fiscal year, while the Hydrasun framework may pave the way for follow-on projects involving submarine or surface-vessel hydrogen systems. Together, these developments reinforce Nel ASA's positioning as a supplier of specialised PEM technology in high-reliability applications.

What's next — scenarios

Base: Continued expansion in defense niche (60%)

Steady revenue growth from specialized maritime contracts.

Upside: Scaling for broader maritime industry (25%)

Transition from specialized defense niche to standard maritime life-support across commercial fleets.

Downside: Supply chain or certification delays (15%)

Delayed delivery schedules affecting Collins Aerospace's production timelines.

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