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Nel ASA expands submarine life-support technology footprint through additional Collins Aerospace orders

Executive summary: Nel Hydrogen US, a subsidiary of Nel ASA, secured additional purchase orders from Collins Aerospace for PEM electrolyser stacks used in submarine life-support environments. The recurring orders from a major aerospace player like Collins Aerospace validate Nel's specialized PEM technology in mission-critical, high-reliability defense applications.

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

Likely next: Further capacity expansion or technical refinements to meet increasing demand from aerospace and defense clients.

Nel ASA has announced that its subsidiary Nel Hydrogen US received additional purchase orders from Collins Aerospace for PEM electrolyser stacks destined for oxygen generation in US Navy submarine life‑support systems. These orders follow a series of earlier contracts with the same aerospace partner, indicating a continuing relationship centred on supplying specialised hydrogen‑based equipment for military vessels. In parallel, Nel ASA entered a framework agreement with Hydrasun, positioning the latter as a European integration partner for its PEM electrolyser solutions. The expanded Collins Aerospace business underscores the growing defence‑sector demand for reliable, on‑board oxygen generation and highlights Nel ASA’s capability to meet stringent naval specifications. By securing repeat orders, the company gains visibility into a stable revenue stream from a niche but strategically important market. The Hydrasun framework is likely to facilitate broader distribution and integration of Nel’s PEM technology across European customers, potentially opening additional civilian and industrial applications. In the near term, the focus will shift to fulfilling the current submarine contracts while exploring further opportunities with both aerospace and maritime clients.

What's next — scenarios

Base: Continued niche dominance (60%)

Nel maintains steady revenue from specialized defense contracts.

Upside: Large-scale defense adoption (25%)

The technology scales beyond life-support into broader naval power applications.

Downside: Supply chain bottlenecks (15%)

Execution delays impact delivery timelines to Collins Aerospace.

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