Nel, Rheinmetall partners to decentralise renewable fuel production in Norway

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Norwegian industrial gas company Nel and German defence contractor and integrated technology group Rheinmetall have signed a memorandum of understanding (MoU) to explore joint opportunities in decentralised renewable fuel production.

The collaboration will combine Nel's electrolyser technology for renewable hydrogen production with Rheinmetall's Giga PtX concept and systems-integration expertise to assess scalable, modular solutions for the localised production of low-carbon synthetic fuels for defence and critical infrastructure applications.

For the Giga PtX project, Rheinmetall has been seeking and announcing strategic tie-ups with local champions for specific markets. Building on this great progress, Rheinmetall is expanding its strong partner network with Nel for the Norwegian market.

The parties will explore the deployment of decentralised synthetic fuel production based on renewable hydrogen produced through electrolysis, enabling the production of synthetic fuels that can substitute conventional fuels without requiring changes to end-use applications.

By producing fuels closer to where they are needed, it can reduce reliance on centralised production and long, vulnerable supply chains. Additionally, by deploying modular fuel production nearer to demand centres, the collaboration aims to strengthen energy security and preparedness through a more decentralised fuel supply system.

In a period of heightened geopolitical tension, secure access to fuels is becoming an increasingly important part of national preparedness, Nel states, explaining that many countries remain dependent on imported fuels or refined products supplied through long, centralised logistics chains.

Under the MoU, Nel and Rheinmetall will jointly assess technical and commercial feasibility, including 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.

"Producing fuels closer to where they are consumed can reduce exposure to disruption and strengthen national and regional energy security. This challenge is particularly evident in Norway. With on