DNV Grants Approval for Innovative Offshore Fuel Cell Power Module
Two offshore energy firms have cleared an important technical hurdle in their effort to bring fuel cell technology to floating production units. Eld Energy and MODEC received Approval in Principle from classification society DNV for a 120 kilowatt solid oxide fuel cell system designed specifically for FPSO installations. The certification, awarded in September 2026 and presented at Gastech in Bangkok, marks a step forward for lower-emission power generation on vessels that have historically relied on gas turbines and diesel engines.
For businesses watching the offshore energy sector, this matters because it demonstrates that credible alternatives to conventional onboard power systems are moving closer to commercial reality. FPSOs play a central role in oil and gas production, particularly in deep water fields. However, their continuous power demands make them difficult assets to decarbonise. The fuel cell concept addresses this by converting produced gas into electricity more efficiently than combustion-based systems, while also creating a pathway for future carbon capture integration.
The approval does not mean the technology is ready for immediate deployment. Instead, it confirms that DNV considers the design technically sound and has identified the conditions needed for full qualification. That distinction is important for supply chain businesses and contractors working in offshore energy, because it signals where investment and development effort is likely to concentrate in the next few years.
Fuel cell technology receives offshore classification approval
DNV issued the Approval in Principle through its Technology Qualification process, a structured assessment framework used to evaluate whether new offshore technologies can operate safely and reliably in demanding marine environments. The process is risk-based and examines technical feasibility before a system undergoes full certification. Consequently, the AiP serves as a checkpoint rather than final approval, but it carries weight because it reflects DNV's view that the core concept is viable for FPSO use.
The Eld Power Module is a solid oxide fuel cell unit rated at 120 kilowatts. It has been designed to run on produced gas drawn directly from FPSO operations, or on alternative fuels if required. Moreover, the system architecture is intended to accommodate future carbon capture equipment, which could allow operators to manage emissions at source rather than venting or flaring gases.
Solid oxide fuel cells operate at high temperatures and convert chemical energy directly into electricity through an electrochemical process. This differs from combustion engines, which burn fuel to generate heat and then convert that heat into mechanical energy. As a result, fuel cells can achieve higher electrical efficiency, particularly when waste heat is recovered. One industry summary suggests the Eld system is targeting electrical efficiency of up to 70 percent when integrated with fuel recovery and carbon management systems.
The collaboration between Eld Energy and MODEC has been ongoing rather than project-specific. Both companies have been working on fuel cell applications for offshore production units as part of a broader decarbonisation effort. Therefore, the DNV approval represents progress within an established development programme rather than a standalone announcement.
Why floating production units are hard to decarbonise
FPSOs are essentially large ships or converted tankers fitted with processing equipment. They extract, process, and store oil or gas from subsea wells, often in remote or deep water locations where fixed platforms are not practical. Because they operate continuously and handle energy-intensive processing tasks, their onboard power requirements are substantial. Most FPSOs currently generate electricity using gas turbines or reciprocating engines fuelled by produced gas or diesel.
These conventional power systems are reliable and well understood, but they produce significant greenhouse gas emissions. Furthermore, FPSOs operate in environments where regulatory pressure to reduce emissions is increasing. Several jurisdictions now require offshore operators to report and reduce emissions from production activities. In addition, major oil and gas companies have made public commitments to cut emissions across their operations, including from floating production assets.
Fuel cells offer a potential solution because they generate power without combustion. This means lower carbon dioxide emissions per unit of electricity, and potentially lower emissions of nitrogen oxides and particulates as well. However, deploying fuel cells offshore presents challenges. The marine environment is harsh, with salt spray, vibration, and temperature fluctuations. Space and weight constraints are also significant on FPSOs, where every square metre of deck space has competing uses.
In addition, fuel cells need careful integration with existing power systems. FPSOs typically require redundant power generation to ensure safety and operational continuity. Therefore, any new technology must fit within existing electrical architectures and meet strict reliability standards. The DNV Technology Qualification process addresses these concerns by examining how new systems will perform in real-world offshore conditions.
Carbon capture readiness adds strategic value
The design of the Eld Power Module includes provision for future carbon capture integration. This is significant because it addresses a major limitation of fuel cells when used with hydrocarbon fuels. While fuel cells produce less carbon dioxide than combustion engines, they still release some CO₂ when running on natural gas or produced gas. If that carbon dioxide can be captured at source, the overall emissions profile improves substantially.
Carbon capture systems separate CO₂ from exhaust gases and either store it or prepare it for reinjection into subsea reservoirs. On an FPSO, captured carbon could potentially be reinjected into the same field from which the oil or gas is being extracted, creating a closed loop. However, carbon capture adds complexity, weight, and cost. Designing a fuel cell system with carbon capture readiness from the outset means the core technology can be deployed first, with capture equipment added later as regulations or commercial conditions require.
Another element of the system design is its ability to use hydrogen-rich gas recovered from carbon capture processes. When carbon dioxide is separated from produced gas, the remaining stream is richer in hydrogen and other light hydrocarbons. This gas can be fed back into the fuel cell, increasing overall efficiency. As a result, the system is designed to become more efficient when carbon capture is added, rather than simply adding a bolt-on emissions control device.
For supply chain businesses and equipment manufacturers, this approach creates a staged opportunity. Initial deployments might focus on the fuel cell alone, with carbon capture equipment supplied and integrated in later phases. This reduces upfront capital requirements while maintaining a clear pathway toward deeper emissions reductions.
What UK businesses should understand about this development
- DNV awarded Approval in Principle to a 120 kilowatt solid oxide fuel cell system developed by Eld Energy and MODEC for FPSO installations in September 2026.
- The approval was granted through DNV's Technology Qualification process, which assesses technical feasibility and identifies conditions for full certification and deployment.
- The fuel cell system is designed to run on produced gas or alternative fuels and includes provision for future carbon capture integration.
- Solid oxide fuel cells can achieve higher electrical efficiency than conventional combustion engines, with reported target efficiency of up to 70 percent when integrated with fuel recovery and carbon management systems.
- FPSOs are difficult to decarbonise due to continuous high power demands, harsh marine environments, and space constraints, but they are coming under increasing regulatory and corporate pressure to reduce emissions.
- The development signals that classification societies and major offshore operators are moving beyond theoretical assessments toward qualification and potential deployment of low-carbon power technologies.
Commercial and regulatory pressures are driving offshore innovation
The push to decarbonise offshore oil and gas production is being driven by several factors. Regulatory frameworks in the UK, Norway, and other jurisdictions now require operators to measure, report, and reduce emissions from offshore installations. For example, the UK government has introduced policies aimed at cutting emissions from oil and gas production as part of broader net zero commitments. Similarly, the Norwegian government has implemented a carbon tax on offshore emissions, creating a direct financial incentive to reduce power generation emissions.
In addition to regulation, investor and stakeholder pressure is influencing corporate behaviour. Major oil and gas companies face scrutiny over their environmental performance, and many have set internal targets to reduce operational emissions. FPSOs represent a significant share of those emissions, so finding credible technological solutions is both a compliance issue and a reputational one.
Fuel cells also offer potential cost benefits over the asset lifecycle. Although upfront capital costs are higher than for conventional engines, fuel cells have fewer moving parts and may require less maintenance. Higher electrical efficiency means less fuel is consumed per unit of electricity generated, which can reduce operating costs, particularly on FPSOs where fuel is either produced gas with alternative uses or diesel that must be transported to the vessel.
For UK businesses involved in offshore supply chains, the movement toward fuel cells and other low-carbon technologies creates both opportunities and risks. Companies that can supply compatible components, integration services, or maintenance support may find new revenue streams. Conversely, businesses tied to legacy power generation equipment may need to adapt their offerings to remain competitive as the sector shifts toward lower-emission alternatives.
Qualification does not equal commercial deployment
It is important to understand what the DNV Approval in Principle does and does not represent. The AiP confirms that DNV considers the Eld Power Module technically feasible for FPSO use and has mapped out the steps required for full certification. However, the system has not yet been tested in operational conditions on a working FPSO. Full qualification will require further design validation, testing, and likely a pilot installation before the technology can be considered proven.
The timeline for commercial deployment will depend on several factors. These include the results of further testing, the willingness of FPSO operators to adopt the technology, and the availability of financing for installation projects. In addition, integration with existing FPSO electrical systems will need to be demonstrated, and crew training and maintenance procedures will need to be developed.
Nevertheless, the AiP provides a credible foundation for further development. It reduces technical risk for potential customers and investors by confirming that a respected classification society has reviewed the concept and found it sound. This can make it easier for Eld Energy and MODEC to secure funding for the next stages of development and to engage with potential early adopters.
For businesses tracking offshore energy trends, the key takeaway is that fuel cell technology for FPSOs is moving from the research phase into the qualification and demonstration phase. Consequently, companies that depend on offshore contracts should begin considering how this shift might affect their operations, supply chains, and customer requirements over the next five to ten years.
Planning for a changing offshore energy landscape
Businesses working in or alongside the offshore energy sector should consider how emerging power generation technologies might affect their operations. If fuel cells gain traction on FPSOs, demand for related components and services will grow. This includes electrical integration, control systems, fuel processing equipment, and maintenance services specific to fuel cell technology.
Companies may also need to think about workforce skills. Fuel cells operate differently from conventional engines, and technicians will need training to install, maintain, and troubleshoot these systems. Therefore, businesses that invest early in building fuel cell expertise may gain a competitive advantage as the technology becomes more widely adopted.
For firms involved in emissions reporting or carbon management, the addition of fuel cells with carbon capture capability creates new service opportunities. Operators will need support to measure and verify emissions reductions, integrate carbon capture systems, and comply with reporting requirements. Businesses that understand both the technical and regulatory aspects of these systems will be well positioned to provide that support.
It is also worth considering the broader trend toward electrification and decarbonisation across offshore energy. Fuel cells are one option among several being explored to reduce emissions. Others include offshore wind-powered electrification, battery storage, and hybrid power systems. Consequently, businesses should maintain awareness of multiple technological pathways rather than focusing solely on fuel cells.
At SBS, we work with businesses that supply into energy-intensive sectors and need to understand how regulatory and technological changes will affect their operations. Our net zero programme helps companies assess emissions, meet compliance requirements, and position themselves for new opportunities in a changing market. We also offer training through SBS Academy to help teams build the knowledge they need to navigate the energy transition.
Where to find further information
For businesses looking to understand more about offshore energy decarbonisation and emerging power technologies, several authoritative sources provide detailed guidance and updates. DNV publishes technical standards and guidance on offshore fuel cell deployment and technology qualification processes. The Department for Energy Security and Net Zero provides policy updates and regulatory guidance relevant to UK offshore operations.
The UK government's environmental reporting guidance for oil and gas operators sets out emissions measurement and reporting requirements. Industry bodies such as the Institution of Mechanical Engineers and the Energy Institute also publish reports and technical papers on offshore electrification and decarbonisation technologies.
Businesses seeking to understand how these changes might affect their operations can also consult with technical advisors and classification societies directly. DNV, Lloyd's Register, and other classification bodies offer guidance on emerging offshore technologies and their regulatory pathways. Staying informed through these channels will help businesses anticipate changes and plan accordingly.