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.

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 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.

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