BW Offshore Blue Ammonia FPSO

[escveritas]

9 Feb 2026

https://www.youtube.com/watch?v=wnvF_uVTWw4

Demand for low-carbon fuels is rising across industries, particularly in sectors that are difficult to electrify. At the same time, substantial volumes of natural gas linked to offshore oil and gas production remain stranded due to limited export infrastructure and commercial constraints.

Blue ammonia presents a practical solution by transforming natural gas into a transportable, lower-carbon fuel suitable for industrial use, power generation and maritime applications. According to the International Energy Agency, achieving emissions reduction targets in shipping and power will require a significant increase in the use of low-carbon ammonia as fuel.

To address this opportunity, BW Offshore has developed a floating production, storage and offloading (FPSO) concept for blue ammonia in collaboration with McDermott International. The partnership combines offshore operational expertise with large-scale engineering and project delivery capabilities.

An integrated offshore solution

The floating blue ammonia FPSO is designed as a fully integrated offshore production and export facility, positioned near suitable gas resources and CO₂ storage sites. Natural gas is transported from nearby offshore installations via subsea flowlines and processed onboard. It is first converted into hydrogen and then synthesised into ammonia using a low-carbon process.

The concept supports a gas intake of up to 3 million cubic metres per day, enabling production of more than one million tonnes of ammonia annually. Carbon capture technology is embedded in the process, with up to 99% of the CO₂ generated during production captured, compressed and prepared for geological sequestration or other approved uses.

The estimated carbon intensity is approximately 0.5 tonnes of CO₂ per tonne of ammonia, aligning with current international standards for low-carbon hydrogen derivatives. Additional options can further reduce emissions from onboard power generation, potentially lowering overall carbon intensity close to zero to meet evolving market requirements.

Greater flexibility and streamlined exports

Locating production offshore helps avoid many challenges associated with large onshore ammonia plants, such as land constraints, complex permitting processes and increased operational exposure. The FPSO model also offers flexibility in site selection and the potential for faster deployment compared with land-based facilities.

Produced ammonia is liquefied and stored in refrigerated tanks within the FPSO hull before being offloaded directly to gas carriers. This approach eliminates the need for extensive pipeline, port or terminal infrastructure, enabling simplified logistics and direct access to international markets.

Leveraging proven expertise

The concept draws on BW Offshore’s track record in designing, constructing, financing and operating floating production units, together with McDermott’s global engineering, procurement, construction, installation and technology integration capabilities. The partners aim to deliver a scalable, technically sound and commercially viable solution.

The floating blue ammonia FPSO can also be structured under capital-efficient leasing models, offering operators a way to monetise surplus gas resources while managing upfront investment and long-term risk.

Supporting the energy transition

The blue ammonia FPSO concept is part of BW Offshore’s New Ventures portfolio, focused on advancing offshore solutions that contribute to the energy transition while building on established competencies.

By converting surplus offshore natural gas into a lower-carbon fuel, floating blue ammonia could unlock new revenue streams, enhance energy security and support a more diversified global energy mix.