McDermott, BW Offshore to explore offshore blue ammonia production

McDermott and BW Offshore announced on September 19 their collaboration to explore the technical and commercial viability of offshore blue ammonia production.

The partnership will combine McDermott's expertise in engineering, procurement, construction, and installation (EPCI) with BW Offshore's experience in floating production storage and offloading (FPSO) solutions.

The companies aim to develop low-carbon ammonia production aboard an FPSO facility, which offers potential benefits such as enhanced environmental, health, and safety outcomes, schedule reliability, and competitive costs for ammonia production.

BW Offshore's role will focus on applying its innovative approach to FPSO production facilities, aligning with its commitment to advancing sustainable technologies in the energy transition. Meanwhile, McDermott will contribute its technical knowledge and project execution capabilities, leveraging its global fabrication assets and modular solutions.

Blue ammonia refers to ammonia produced from natural gas where the carbon emissions are captured and stored (CCS), reducing its carbon footprint. Ammonia itself is a key industrial chemical used in fertiliser production, and its potential as a clean energy carrier has gained attention due to its hydrogen content.

Blue ammonia is seen as a transitional solution towards fully green ammonia, offering a lower-carbon alternative while existing infrastructure adapts to greener technologies.