Nel ASA secures a purchase order from Collins Aerospace to supply PEM electrolyser stacks for US Navy submarine life‑support systems, marking a step into defense‑sector hydrogen applications
Executive summary: Nel Hydrogen US received a purchase order from Collins Aerospace for PEM electrolyser stacks to be used in US Navy submarine life‑support systems. The order signals expansion of hydrogen electrolyser technology into defense maritime applications, potentially opening a new revenue stream for Nel ASA.
Who is involved: Nel ASA (via its subsidiary Nel Hydrogen US), Collins Aerospace, and the US Navy.
Likely next: Delivery and integration of the stacks, with possible follow‑on orders pending successful testing and deployment.
Nel Hydrogen US, a subsidiary of Nel ASA, announced receipt of a purchase order from Collins Aerospace for PEM electrolyser stacks destined to generate oxygen for life‑support systems on US Navy submarines. The order reflects growing interest in using on‑site hydrogen electrolysis for naval applications, though financial terms and delivery timelines were not disclosed. The development positions Nel ASA to expand its defense‑sector footprint while highlighting the niche market for maritime hydrogen solutions. No immediate financial impact was disclosed in the release.
What's next — scenarios
Base: Order fulfilled on schedule (50%)
Nel ASA delivers the PEM electrolyser stacks within the next 12 months, generating modest revenue and validating its defense‑sector hydrogen offering.
- First shipment delivered by Q2 2027
- No changes to contract terms
- Successful stack performance in Navy testing
Upside: Follow‑on contracts awarded (30%)
Successful deployment leads to additional PEM electrolyser orders for broader US Navy fleet, significantly increasing Nel ASA’s defense revenue.
- US Navy announces expanded hydrogen life‑support program by Q4 2027
- Collins Aerospace issues a second purchase order
- NEL ASA reports increased backlog in hydrogen defense segment
Downside: Delay or cancellation (20%)
Technical integration issues or program revisions delay or cancel the order, limiting financial impact and slowing Nel ASA’s defense market entry.
- US Navy postpones submarine life‑support system trials past Q1 2028
- Collins Aerospace cites performance concerns in stack testing
- NEL ASA reports no revenue from the order in FY 2027 financials
What to watch
- Nel ASA Q4 2026 earnings release (expected early November 2026) – look for any mention of the Collins Aerospace order or hydrogen defense revenue.
- Collins Aerospace press release on additional hydrogen contracts (expected December 2026) – would signal upside scenario.
- US Navy submarine life‑support system testing schedule (expected January 2027) – milestone for stack integration.
- First delivery milestone for the PEM electrolyser stacks (expected March 2027) – confirms base scenario progress.
Timeline
- — Nel ASA: Receives purchase order from Collins Aerospace for US Navy stacks (PR Newswire)
- — Nel ASA: Enters framework agreement with Hydrasun as a European integration partner for PEM electrolyser solutions (PR Newswire)
Analysis — what this means
Sectors affected
- marine submarine life‑support systems
- PEM electrolyser manufacturing
- defense aerospace sector
Historical parallels
- Nel ASA framework agreement with Hydrasun for PEM electrolyser integration (September 10, 2026)
Key entities
Sources
- Nel ASA: Receives purchase order from Collins Aerospace for US Navy stacks — PR Newswire
- Nel ASA: Enters framework agreement with Hydrasun as a European integration partner for PEM electrolyser solutions — PR Newswire