Oslo – October 13, 2026 -- Nel ASA and Rheinmetall AG have signed a non-binding Memorandum of Understanding to explore decentralised production of low-carbon synthetic fuels for defence and critical infrastructure, starting with the Norwegian market.
The partners will combine Nel's electrolyser technology with Rheinmetall's Giga PtX concept and systems-integration expertise. They will assess scalable, modular solutions based on renewable hydrogen produced through electrolysis. The resulting fuels can substitute conventional fuels without changes to end-use applications.
Norway's single refinery drives the case for localised fuel supply
Norway operates only one oil refinery. The country exports significant volumes of crude oil to Europe for refining, and refined products are then shipped back for domestic use. In a disruption, parts of the fuel supply chain depend on infrastructure beyond national control.
Producing fuels nearer to demand centres is intended to cut reliance on centralised production and long, vulnerable logistics chains. The partners say this would strengthen energy security and preparedness.
Rheinmetall adds Nel to its Giga PtX partner network for Norway
For Giga PtX, Rheinmetall has been seeking and announcing strategic tie-ups with local champions for specific markets. Nel fills that role for Norway. Nel will contribute its electrolyser technology for renewable hydrogen production. Rheinmetall will contribute the Giga PtX concept, systems-integration capabilities and experience in strategic infrastructure.
Nel CFO Kjell Christian Bjørnsen said the company is exploring how its technology can be integrated into new value chains for synthetic fuels. Shena Britzen, Head of Hydrogen Program at Rheinmetall, said localised production enabled by electrolysis can serve both civilian and defence-related needs.
Transmission constraints, not generation shortages, shape Norway's grid
The partners describe Norway as a natural starting point given its strong renewable power base, industrial capabilities and ongoing development of carbon capture and utilisation value chains. The scope of the cooperation is not limited geographically.
Norway's energy system is characterised less by a shortage of electricity generation than by constraints in transmission and distribution. Decentralised fuel production would convert and use renewable energy closer to its source. This could add flexibility in how renewable power is used and potentially reduce pressure on existing infrastructure.
MoU limits next steps to feasibility work and possible pilots
Under the MoU, Nel and Rheinmetall will jointly assess technical and commercial feasibility. The assessment covers potential sites, infrastructure requirements, renewable power access, sustainable carbon sources and priority use cases. The cooperation may include pilot projects to validate modular concepts and demonstrate the viability of decentralised fuel ecosystems.
The MoU is non-binding. Any further steps will be subject to mutual agreement and ongoing assessments. No financial terms, timelines or capacity figures were disclosed.