Nel ASA has received a new purchase order worth about $12 million from Collins Aerospace for PEM electrolyser stacks used in US Navy submarines.
The equipment will produce oxygen for onboard life-support systems, with deliveries scheduled across 2027 and 2028. The order extends a long-running supply relationship between Nel and Collins Aerospace for submarine oxygen-generation equipment.
Nel Hydrogen US, Nel ASA’s US subsidiary, will manufacture the stacks at its Wallingford, Connecticut, facility. The company announced the order on September 29, 2026, and said the equipment will support oxygen generation for US Navy submarine life-support systems. Deliveries are expected throughout 2027 and 2028.
PEM stands for proton exchange membrane, a type of electrolysis technology that uses electricity to split water into hydrogen and oxygen. In this application, the system produces oxygen onboard submarines rather than hydrogen for industrial use. This provides a dedicated oxygen source for the vessel’s life-support system during underwater operations.
Nel Chief Commercial Officer Todd Cartwright said the latest purchase extends the company’s long-standing cooperation with Collins Aerospace.
He said Nel’s Wallingford team has supplied the specialized equipment for many years. The order adds another production program for the company’s PEM technology in the defence and life-support market.
Collins Deal History
The latest purchase follows a $6 million Collins Aerospace order announced by Nel in March 2025. That order covered PEM electrolyser stacks for US Navy submarines and formed part of the companies’ established supply relationship. Nel has received several earlier orders for similar equipment.
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The relationship also includes previous US and UK naval programs. In 2020, Nel reported more than $10 million in combined orders for PEM electrolyzer cell stacks for submarine applications. In 2017, its US subsidiary Proton OnSite also received orders worth more than $2.3 million for stacks supporting US and UK submarine fleets.
Why PEM Technology
Nel’s submarine systems use PEM electrolysers for a specialized onboard application. The technology separates water into its component gases, allowing the system to supply oxygen without relying on an external air source. This differs from Nel’s larger commercial electrolysers, which are mainly designed to produce hydrogen for industrial and energy projects.
Nel says its PEM technology has roots in aerospace and life-support applications. The company now applies the technology across a wider range of markets, including renewable hydrogen production. Its portfolio also includes alkaline electrolysers for large-scale hydrogen projects.
Wallingford Capacity
Nel will produce the new stacks at its Wallingford facility, which has supported the company’s PEM operations for years. In 2024, Nel opened an expanded and automated PEM manufacturing facility at the site. The expansion increased its stated annual production capacity from 50 megawatts to 500 megawatts.
The larger facility supports Nel’s broader PEM business, while the Collins order adds to its specialized naval work. Earlier contracts covered US and UK programs, while the latest order focuses on US Navy submarine systems. The production schedule will run through 2028.
Deliveries Through 2028
Deliveries under the new contract are expected throughout 2027 and 2028. Nel will manufacture the stacks in Connecticut, then supply them to Collins Aerospace for integration into the relevant submarine systems. The company has not disclosed the number of stacks included in the order.
The contract follows additional submarine-related orders Nel announced in September 2026.
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Those orders covered US, UK and French naval programs and brought the value of submarine-related Collins Aerospace orders announced that month to about $20 million. The latest purchase therefore adds to an established program rather than representing a new customer relationship.
For Nel, the order extends its presence in a specialized PEM market alongside its larger hydrogen business. For Collins Aerospace and its naval customers, the equipment will support submarine life-support systems. The deliveries planned through 2028 will give the Wallingford operation another multi-year production program.
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