Nel ASA Taps Hydrasun for European System Integration as $20 Million Submarine Backlog Stretches Into 2028

Nel ASA signs Hydrasun framework deal and books ~USD 20M in Collins Aerospace submarine orders, but revenue won't arrive until 2027–28.

Nel ASA is pushing a partner-led manufacturing model in Europe while simultaneously deepening its ties to naval defense programs in the United States — a dual strategy that fills the Norwegian hydrogen company's order book but leaves a multiyear gap before those contracts translate into revenue.

At the center of the European effort is a framework agreement signed September 10 under which Hydrasun will handle procurement, manufacturing and integration of complete systems built around Nel's electrolyser stacks. The arrangement, first reported by the Norwegian Hydrogen Forum on September 17, expands Nel's European integration capacity. Hydrasun takes on the balance-of-plant scope at its Aberdeen base, including the integration of containerized PEM systems, while Nel concentrates on producing the stacks themselves — the core component of the value chain.

Rather than covering every stage of large-scale plant construction in-house, the company is deliberately folding specialized partners into its manufacturing network, a shift that lets it scale integration capacity without carrying the full industrial footprint itself.

Submarine Orders Booked in Q3, Delivered in 2027–28

On the other side of the Atlantic, Nel Hydrogen US has secured orders from Collins Aerospace for PEM electrolyser stacks destined for oxygen generation in submarine life-support systems. The units will serve the navies of the United States, the United Kingdom and France.

The total volume of the Collins Aerospace orders comes to roughly USD 20 million. A single main order accounts for about USD 12 million, with additional call-offs contributing approximately USD 7 million; smaller orders make up the remainder. Nel will book the full amount in the third quarter of 2026, but the stacks are not scheduled for delivery to Collins Aerospace until 2027 and 2028. The operational execution of these contracts is spread across several years, meaning the earnings from the fleet programs will only hit the income statement in the medium term.

That lag between order intake and cash realization is drawing close attention from market participants, who are weighing how the multiyear delivery cycles fit into Nel's broader path toward profitability.

Market Awaits October 15 Interim Report

Nel ASA will publish its third-quarter 2026 interim report on October 15. Investors will be watching for signs of progress on operating margin and cash burn alongside the long-term industrial orders — the central question being how the company's route to profitability is shaping up while fresh large-scale contracts remain years away from becoming revenue.

The stock has reflected that caution. Nel ASA shares ended Friday's session at EUR 0.1936, and traded at EUR 0.1926 during the most recent session with little movement. At current levels, the paper sits 47 percent below its 52-week high of EUR 0.3655.

Despite a growing order book, the shares remain far beneath their yearly peak, underscoring the skepticism investors have shown over recent months as they wait for the company's industrial partnerships and naval contracts to convert into tangible financial results.