Floating Blue Ammonia: BW Offshore and McDermott Unveil New FPSO Concept

BW Offshore has pulled the curtain back on a new floating blue ammonia FPSO concept. Developed in collaboration with McDermott International, this design combines offshore production, carbon capture, and direct export. The goal is simple. They want to convert surplus natural gas into lower-carbon fuel right at the source.

The floating production, storage, and offloading (FPSO) concept is a massive floating factory. It is designed to process up to 3 million cubic meters of gas per day. That input yields more than one million tonnes of ammonia annually. The system incorporates carbon capture technology to handle the emissions. It captures and compresses up to 99% of the CO2 generated during production. This CO2 is then ready for export to geological sequestration or other approved uses.

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The Engineering Behind the Concept

This unit is meant to sit close to offshore gas sources and CO2 storage sites. Natural gas travels via a subsea flowline to the vessel. Once onboard, it gets converted into hydrogen and then ammonia using a low-carbon process.

The design aligns with prevailing international criteria for low-carbon hydrogen derivatives. The estimated carbon intensity sits around 0.5 tonnes of CO2 per tonne of ammonia. Operators also have options to further reduce emissions from onboard power generation systems.

Why Go Offshore?

Building onshore facilities is often a headache. You face land availability issues. You have to navigate complex permitting processes. You need extensive pipeline infrastructure. By placing ammonia production offshore, this concept avoids those constraints entirely.

The logistics are streamlined. Liquefied ammonia is stored in refrigerated tanks within the hull. From there, it is offloaded directly to gas carriers. This removes the need for pipelines or port infrastructure. It effectively unlocks stranded gas assets that would otherwise be too expensive to bring to market.

Meeting Market Demand

The demand for low-carbon fuels is rising. This is especially true in sectors where electrification is limited. The International Energy Agency has forecast that the use of low-carbon ammonia in power generation and maritime transport must increase significantly. We need this shift to meet global emissions reduction targets.

"Demand for low-carbon fuels is increasing across multiple sectors, particularly in hard-to-abate industries where electrification alone is insufficient," stated BW Offshore.

This concept builds on the company's long experience in floating production. It forms part of their New Ventures portfolio focused on energy transition opportunities. McDermott brings the engineering, procurement, construction, and installation expertise to the table.

Commercial Flexibility

This isn't just an engineering feat. It is a commercial one. BW Offshore noted that the solution could be structured through capital-efficient leasing models. This offers flexibility for operators. They can monetize surplus gas resources without taking on all the risk of building a permanent onshore plant.

The industry needs practical solutions for the energy transition. Turning stranded gas into clean ammonia offshore makes sense. It leverages existing technology in a new way. It also provides a clear path for oil and gas companies to pivot toward lower-carbon products.