German defense and technology group Rheinmetall AG has signed a Memorandum of Understanding (MoU) with Norwegian hydrogen specialist Nel ASA to explore the joint production of decentralized renewable fuels.

The companies aim to combine Rheinmetall’s Giga PtX concept with Nel’s established electrolyzer technology to develop scalable, modular solutions for producing low-carbon synthetic fuels.

The partnership will initially focus on Norway. It will assess the technical and commercial feasibility of localized production to support critical infrastructure and strengthen energy security.

The initiative aims to reduce reliance on long, vulnerable supply chains by producing synthetic fuels closer to where they will be used. The fuels could substitute for conventional fuels in civilian and defense applications.

Nel is the third electrolyzer company to partner with Rheinmetall on the initiative.