Floater specialist BW Offshore has partnered with Houston-based offshore contractor McDermott to develop a blue ammonia FPSO, merging offshore production expertise with large-scale engineering to unlock low-carbon fuel production.
Positioned near gas sources and CO₂ storage sites, the integrated unit processes up to 3m cu m of natural gas daily via subsea flowline, yielding over 1m tonnes of ammonia annually.
Onboard carbon capture hits 99% efficiency, delivering a carbon intensity of just 0.5 tonnes CO2 per tonne of ammonia—meeting international low-carbon criteria. Further power system tweaks could drive emissions near zero.
The FPSO-based design sidesteps onshore challenges such as land scarcity, complex permitting, and community exposure, offering location flexibility and faster deployment. Ammonia is liquefied in refrigerated hull tanks for direct offloading to gas carriers, bypassing pipeline, terminal, or port infrastructure.
By converting surplus natural gas into transportable lower-carbon fuel, the concept creates new revenue streams, bolsters energy security, and diversifies the energy mix. The International Energy Agency expects blue ammonia to scale rapidly for power generation and maritime transport to meet emissions targets.
The two companies entered into a collaboration in September 2024 to advance the technical and commercial viability of offshore blue ammonia production.
