Skip to content
Welcome, thoughtbot's Giant Robots listeners!Start here
European Energy Markets
22JUN

Europe bids for the AUKUS seabed

3 min read
13:56UTC

Kongsberg and DRASS unveiled a joint undersea-warfare bid at ILA Berlin on 8 June, ten days after AUKUS launched its first undersea payload project.

EconomicDeveloping
Key takeaway

Europe will not cede the AUKUS undersea-hardware market to US primes without a contest.

Kongsberg of Norway and Italy's DRASS unveiled a combined undersea-warfare bid at ILA Berlin, Germany's aerospace and defence exhibition, on 8 June 2026. Their pitch pairs Kongsberg's HUGIN Superior autonomous underwater vehicle (AUV, a self-navigating submersible) and HISAS 1032 synthetic-aperture sonar with DRASS's DG-900 compact submarine, a host that carries three AUVs. The two firms named 2027 as their target for AUKUS Pillar II procurement⁠1.

AUKUS Pillar II is the advanced-capability strand of the Australia-UK-US security partnership, covering uncrewed undersea vehicles, payloads and enabling systems. Its first Signature Project, launched on 30 May, funds payloads and enabling systems for each partner's own vehicles and names no vehicle. Kongsberg and DRASS arrived ten days later to pitch for the hardware those payloads will ride on.

The DG-900 changes what is being offered. A compact submarine carrying three AUVs is a different procurement object from a torpedo-launched vehicle like the IVER4 900, and it gives navies without large attack-submarine fleets a route into seabed autonomy. The opening these two firms are reading is the same one that drew HII and Babcock to pitch their REMUS vehicles to the Royal Navy in May. Britain's nearest equivalent, BAE Systems' Herne extra-large AUV, remains in Lloyd's Register certification with no Royal Navy order⁠2.

No money has changed hands. Kongsberg and DRASS disclosed no contract value and no customer commitment, only intent, and 2027 sits well over a year out. An air-show announcement marks where a supplier wants to compete; it moves neither hardware nor budget. The speed of the European response, rather than its maturity, is what the procurement professional should log.

Deep Analysis

In plain English

AUKUS is a defence partnership between Australia, the UK, and the US, best known for its plan to give Australia nuclear-powered submarines. But it also has a second track covering advanced military technology, including underwater drones. On 30 May 2026, the three nations announced which underwater drones would form that programme's first official project. Both named vehicles were made by US companies. That left European firms out in the cold. Kongsberg, a Norwegian company, makes HUGIN, one of the most capable underwater survey drones in the world. DRASS, an Italian firm, builds compact submarines. They announced at a Berlin air show on 8 June that they would offer HUGIN mounted inside a DRASS submarine as a joint package, targeting the AUKUS programme from 2027. Think of it like this: the US has claimed the 'drone' slot, but someone still needs to supply the submarine that carries the drone underwater. Kongsberg and DRASS announced on 8 June that their combined package, HUGIN inside a DG-900, fills that submarine role.

Deep Analysis
Root Causes

AUKUS Pillar II's 30 May 2026 Signature Project funds payloads and enabling systems and names no vehicle. That leaves openings at two levels: first, at the payload layer (sonars, sensors, and effectors mounted on the vehicles), where HISAS 1032 is already a qualified NATO payload; second, at the host-platform layer (the submarine that launches and recovers the AUV), where no AUKUS commitment has been made.

Kongsberg's export position derives from Norway's defence-industrial relationship with the US: as a Major Non-NATO Ally equivalent under US export licensing, Norway has preferential access to ITAR-controlled components, which allows HUGIN to integrate US Navy payload standards without a full AUKUS partner waiver.

DRASS's DG-900 compact submarine fills the gap for navies, such as Australia's Collins-class interim fleet, that cannot yet operate nuclear-powered boats but need AUV-launch capability before the SSN-AUKUS boats arrive in the 2030s.

What could happen next?
  • Consequence

    If Kongsberg qualifies HUGIN Superior as an AUKUS Pillar II payload on US-built submarines, it establishes a European AUV in the programme's core hardware roster without requiring a new platform competition.

    Medium term · Suggested
  • Risk

    The DG-900 compact submarine faces ITAR compatibility review before any AUKUS nation can purchase it with US-funded programme money, which could eliminate the platform layer of the bid while leaving the payload layer intact.

    Short term · Assessed
  • Opportunity

    Australia's interim AUV capability gap between now and SSN-AUKUS delivery in the 2030s creates demand for compact-submarine AUV hosts that neither the US nor UK currently offer, a niche the DG-900 is sized to fill.

    Medium term · Suggested
  • Precedent

    A successful Kongsberg HUGIN qualification as an AUKUS Pillar II payload would give other European sensor and AUV makers a legal pathway into the programme without competing for named platform slots.

    Long term · Suggested
First Reported In

Update #3 · Europe bids for the AUKUS seabed layer

Tech Times· 13 Jun 2026
Read original →
Different Perspectives
Cross-border power traders
Cross-border power traders
The France-Germany day-ahead spread flipped from a EUR 17.20 German premium on 1 August to a EUR 4.15 French premium on 3 August, the same day French curtailment peaked. They cannot yet attribute the flip to curtailment alone, since a like-for-like overnight comparison shows French nuclear output rising while wind fell and demand returned on the weekday step.
EDF
EDF
River-cooling limits took 7.6 GW, 12 per cent of its fleet, offline on 3 August, the highest curtailment since the heatwave began, with an easing forecast to 4.3 GW on 4 August and 3 GW after. It manages the cut as a recurring seasonal constraint, expecting it to lift with river temperature, not repair.
Gasunie
Gasunie
TTF, the Dutch hub it operates, drifted to roughly EUR 55 to 58 per MWh across the window, staying inside its recent range through both the German spark reversal and the French curtailment. It reads a flat hub price as evidence that neither event this window carried enough weight to move the fuel leg on its own.
German gas-fired generators
German gas-fired generators
Record German solar of 18,761 MW on 2 August pushed the clean spark spread to minus 18.48 EUR/MWh, a loss-making day, before it returned to plus 16.20 on 3 August. They now price dispatch against post-solar residual load rather than wind alone, since the sign flipped inside 48 hours on unchanged fuel and carbon costs.
European Commission (DG Energy)
European Commission (DG Energy)
Its implementing-measures register logged transposition notices from only Portugal and Slovakia against Wednesday's Article 94 deadline for Directive (EU) 2024/1788, with 25 states silent. It expects the register to fill only gradually, since filing routinely lags legislating and any infringement track against non-notifying states runs on a slower clock than the deadline itself.
Spain's LNG terminal operators
Spain's LNG terminal operators
Spain's 9,145 GWh terminal inventory is the largest single stock in the EU LNG network, an option value that can reroute cargoes wherever the winter strip pays best rather than a cavern gas obligation tied to a fixed date. That flexibility matters more as Germany's cavern shortfall pushes more of the winter security question onto import infrastructure.

Written with AI from Lowdown's published reporting. Not individually reviewed by an editor. Editorial standards.