New hydrogen-based synthetic fuel systems target military and critical infrastructure

Nel ASA and Rheinmetall AG have agreed to work together on decentralized production of renewable synthetic fuels for defense and critical infrastructure. Announced on October 13, 2026, the partnership will bring together Nel’s electrolyzer technology and Rheinmetall’s Giga PtX concept to assess modular fuel production systems that could boost energy security.

The companies aim to produce low-carbon synthetic fuels closer to where they are needed. These fuels could take the place of conventional fuels in current uses, which would help reduce reliance on centralized production and long, easily disrupted supply chains.

Modular systems target energy security

As part of the collaboration, Nel will provide its electrolyzer technology to make renewable hydrogen, and Rheinmetall will add its Giga PtX concept and systems-integration expertise. The companies will examine how these technologies can support local fuel production for both civilian and defense uses.

Rheinmetall has been working with regional companies to move its Giga PtX project forward in certain markets. The agreement with Nel extends this network into Norway, where both companies see opportunities to develop decentralized synthetic fuel systems.

The approach could allow fuel production facilities to operate closer to military installations, industrial sites and other critical infrastructure. Shorter supply routes could help reduce exposure to transport interruptions and improve access to essential fuels during emergencies.

Norway offers a starting point

Norway is a potential starting market because of its renewable electricity resources, industrial capabilities, and developing carbon capture and utilization sector. The country also encounters difficulties in transmitting and distributing electricity, despite substantial power-generation capacity.

Converting renewable electricity into hydrogen and synthetic fuels near production sites could provide another way to use available energy resources. This approach may also ease pressure on existing electricity infrastructure by storing and transporting energy as fuel.

Norway’s dependence on international refining networks bring another challenge. The country operates only one oil refinery and exports significant volumes of crude oil to Europe for processing before refined products return for domestic consumption. Disruptions to external infrastructure could therefore affect parts of its fuel supply chain.

Companies outline their ambitions

Nel believes renewable hydrogen could help countries strengthen fuel security while cutting emissions.

“Countries that depend on long and vulnerable fuel supply chains face increasing uncertainty. We believe renewable hydrogen can play an important role in enabling more resilient fuel systems while reducing emissions,” said Kjell Christian Bjørnsen, CFO of Nel. “Through this collaboration with Rheinmetall, we are exploring how our technology can be integrated into new value chains for synthetic fuels.”

Rheinmetall sees the partnership as an opportunity to develop fuel systems for both civilian and defense requirements.

“The transformation of energy systems requires new partnerships across industries,” stated Shena Britzen, Head of Hydrogen Program of Rheinmetall AG.

“By working with Nel, we are exploring decentralized synthetic fuel solutions that can support both civilian and defense-related needs. We see localized synthetic fuel production, enabled by electrolysis, as an important element in strengthening energy security and future fuel supply chains.”

Feasibility studies will guide next steps

The companies will review potential production sites, infrastructure needs, access to renewable electricity, and sustainable carbon sources. They will also identify priority applications and evaluate the technical and commercial feasibility of the proposed systems.

Pilot projects could follow to test modular production concepts and demonstrate how decentralized synthetic fuel networks might operate.

The MoU is non-binding, meaning neither company has committed to a particular project or investment. Any further development will depend on mutual agreement and the outcome of their assessments. Although Norway is the initial focus, the partnership’s scope is not geographically restricted.