According to BW Offshore, Global demand for low-carbon fuels is accelerating, particularly in hard-to-abate sectors such as power generation, shipping and heavy industry. As companies and governments pursue net-zero targets, blue ammonia is emerging as a practical and scalable energy carrier.
At the same time, significant volumes of offshore natural gas remain under-utilised due to limited export infrastructure, high development costs or commercial constraints. The Blue Ammonia FPSO concept developed by BW Offshore in partnership with McDermott International is designed to unlock this stranded gas and convert it into a transportable, low-carbon fuel.
According to the International Energy Agency, the use of low-carbon ammonia must expand significantly in maritime transport and power generation to meet global emissions reduction targets. Floating blue ammonia production offers a direct pathway to support this transition.
The Blue Ammonia FPSO (Floating Production, Storage and Offloading) is an integrated offshore facility that produces, stores and exports low-carbon ammonia directly at sea.
Located close to offshore gas fields and CO₂ storage sites, the FPSO receives natural gas via subsea flowlines from nearby installations. Onboard processing converts the gas into hydrogen and then synthesises it into ammonia using a low-carbon production process with carbon capture.
Captured CO₂ is compressed and exported for geological sequestration or approved utilisation, supporting compliance with international low-carbon fuel standards. Additional electrification and energy efficiency options can further reduce onboard emissions, potentially lowering carbon intensity close to zero.
Many offshore fields produce associated gas that is difficult or uneconomic to export. The floating blue ammonia FPSO enables operators to convert surplus gas into a globally traded energy commodity without relying on new pipelines or large onshore facilities. Ammonia is liquefied and stored in refrigerated tanks within the FPSO hull and offloaded directly to gas carriers for export to international markets. The FPSO-based design allows for relocation and flexible field development strategies. Compared to large onshore projects, floating solutions can potentially shorten development timelines and reduce upfront capital exposure.
The Blue Ammonia FPSO builds on BW Offshore’s decades of experience in designing, financing, constructing and operating complex floating production units worldwide. McDermott contributes global engineering, procurement, construction, installation and technology integration capabilities.
Together, the companies aim to deliver a technically robust, scalable and commercially viable offshore blue ammonia solution. The concept can be structured under capital-efficient leasing models, enabling operators to monetise gas reserves while managing financial risk and long-term exposure.
Blue ammonia is increasingly viewed as a key hydrogen carrier and marine fuel of the future. As demand grows for decarbonised power and shipping fuels, offshore production models may play a critical role in supplying global markets. As the energy transition accelerates, floating blue ammonia production could become a strategic solution for delivering scalable, low-carbon fuel directly from offshore resources to global markets.
