Demand for low-carbon fuels is increasing across multiple sectors, particularly in hard-to-abate industries where electrification alone is insufficient. At the same time, significant volumes of natural gas associated with offshore oil and gas production remain under-utilised. In many cases, limited export infrastructure or commercial constraints make it difficult to bring these resources to market.
Blue ammonia offers a potential pathway to address this challenge by converting natural gas into a transportable, lower-carbon fuel that can support a range of industrial and energy applications. The International Energy Agency forecasts that use of low-carbon ammonia as fuel for power generation and maritime transport must increase significantly to achieve emissions reduction targets in these sectors.
BW Offshore has developed a blue ammonia floating production, storage and offloading (FPSO) concept in collaboration with McDermott International, combining offshore production and operations experience with large-scale engineering and execution capabilities.
An integrated offshore production concept
The floating blue ammonia FPSO is designed as an integrated offshore production and export unit, located close to suitable gas sources and CO₂ storage sites. Natural gas is supplied from nearby offshore facilities via subsea flowline and processed onboard, where it is converted into hydrogen and subsequently to ammonia using a low-carbon process.
The concept is designed for a gas intake capacity of up to 3 million cubic metres per day, producing more than one million tonnes of ammonia per year. Carbon capture is incorporated into the process, with up to 99% of the CO₂ generated during production captured and compressed for export to geological sequestration or other approved use.
With an estimated carbon intensity of around 0.5 tonnes of CO₂ per tonne of ammonia, the concept is intended to align with prevailing international criteria for low-carbon hydrogen derivatives. Options are available for further reduction of emissions from on-board power generation systems, lowering carbon intensity to almost zero to meet future market needs.
Flexibility and simplified export
By placing production offshore, the floating solution avoids many of the constraints associated with large onshore ammonia facilities, including land availability, permitting complexity and onshore operational exposure. The FPSO-based design also enables greater flexibility in location and has the potential for faster deployment compared to onshore alternatives.
Ammonia is liquefied and stored in refrigerated tanks within the FPSO hull and offloaded directly to gas carriers. This removes the need for pipeline, terminal or port infrastructure, allowing for direct export to international markets with simplified logistics.
Built on proven capabilities
The concept builds on BW Offshore’s experience in designing, constructing, financing and operating complex floating production units, combined with McDermott’s global engineering, procurement, construction, installation and technology integration expertise. Together, the partners aim to offer a technically robust and commercially viable solution that can be delivered at scale.
The floating blue ammonia FPSO can be structured with capital-efficient leasing models, providing flexibility for operators seeking to monetise surplus gas while managing upfront investment and long-term exposure.
Part of BW Offshore’s transition portfolio
The blue ammonia FPSO concept forms part of BW Offshore’s New Ventures portfolio, which focuses on developing offshore solutions that support the energy transition while leveraging established offshore competencies.
By enabling the conversion of surplus natural gas into a lower-carbon fuel, floating blue ammonia has the potential to unlock new value streams, support energy security and contribute to a more diversified energy mix.
The video below illustrates the floating blue ammonia FPSO concept and the collaboration between BW Offshore and McDermott.
