INSIGHTS
MODEC teams with Eld Energy and Delta Electronics to bring solid oxide fuel cells to offshore power generation
2 Feb 2026

MODEC has signed a strategic collaboration with Eld Energy and Delta Electronics to develop solid oxide fuel cell power systems for offshore and maritime use, including floating production, storage and offloading vessels, as the sector looks to cut emissions and improve efficiency.
The agreement, announced in late January, includes an initial purchase order for Delta’s solid oxide fuel cell, or SOFC, stacks and signals a move by the FPSO contractor towards alternative onboard power generation. The partners aim to adapt the technology for the demands of long-life offshore assets.
SOFCs generate electricity through an electrochemical process rather than combustion, allowing higher efficiency and lower emissions than conventional gas turbines. While fuel cells are already used in some onshore and industrial applications, their use on FPSOs would mark a first for the sector.
Under the collaboration, MODEC, Eld Energy and Delta plan to develop a 120 kilowatt SOFC module designed for FPSO operating conditions. Onshore testing is scheduled for 2027, followed by a pilot installation on an FPSO at a later stage. Industry specialists say the project is the most advanced attempt so far to apply SOFC technology to floating production vessels.
FPSOs typically remain in service for 20 years or more, making energy efficiency and emissions performance increasingly important for owners and charterers. Operators are under growing pressure from regulators and investors to demonstrate lower emissions intensity, while contractors are seeking technologies that can also reduce fuel use and operating costs over time.
MODEC has also been adjusting its internal organisation to support more complex vessel designs. The company recently integrated its mooring and fluid transfer activities into a single business unit, a move it says will simplify execution and reduce risk as power and utility systems evolve.
Significant hurdles remain before SOFCs can be deployed at scale offshore. Costs are still high, long-term reliability in marine environments has yet to be proven, and classification societies will require extensive testing and validation.
Even so, the project reflects a broader shift in the FPSO market. Early investment in lower-emissions power technologies suggests that environmental performance is becoming a baseline requirement for future offshore developments, rather than a differentiating feature.
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