Nel ASA Doubles Down on US Navy Work With Fresh $12 Million Collins Aerospace Order

Nel Hydrogen US will build PEM electrolyser stacks in Connecticut for Collins Aerospace, doubling committed volume in the submarine oxygen segment.

Nel ASA's American subsidiary has landed a second contract from Collins Aerospace, this time worth roughly $12 million, for the supply of PEM electrolyser stacks destined for oxygen generation systems aboard US Navy submarines. The order, announced Tuesday, effectively doubles the volume the two partners had already committed to in the same application segment.

Manufacturing will take place at Nel Hydrogen US's facility in Wallingford, Connecticut, with deliveries scheduled across 2027 and 2028. The arrangement gives the Norwegian hydrogen specialist a multi-year production runway at its US site and extends a relationship that began in March 2025, when Collins Aerospace placed a $6 million order for the identical end use.

A Repeat Customer Signals Confidence

Military and maritime applications demand exceptionally stringent quality and safety benchmarks, and the follow-on purchase suggests the customer is satisfied with how Nel's technology has performed under demanding conditions. It also keeps the Connecticut plant busy well into the back half of the decade.

The order fits into a broader manufacturing setup Nel has been assembling on both sides of the Atlantic. Roughly two weeks ago, the company signed a cooperation agreement with Scottish firm Hydrasun, which will handle procurement, manufacturing and system integration around Nel's electrolyser stacks for the European market. The US subsidiary, meanwhile, serves established overseas structures directly — a split-continent approach that lets the group lean on external integration partners while retaining its own footprint in America.

Analysts Stay Cautious Despite the Win

The contract lands against a mixed backdrop. Compared with the prior-year period, Nel's figures showed a 224 percent increase, with PEM technology accounting for 96 percent of that volume. Even so, experts struck a reserved tone during Tuesday's session.

Leadership is also in flux. CEO Håkon Volldal announced his resignation in June and continues to run the business through his six-month notice period while the company searches for a successor.

Market Response Muted

Investors greeted the news with measured optimism rather than enthusiasm. The stock traded at EUR 0.1918 during the session, a modest gain of 0.7 percent on the day, as shareholders weighed the operational progress against months of prior declines.

That caution is visible in the wider chart picture: the shares sit 48 percent below their 52-week high of EUR 0.3655. Whether the existing integration agreements translate into further orders will likely determine how quickly market participants are willing to shift their stance.