BW Offshore, McDermott Unveil Blue Ammonia FPSO Concept (Video)
February 12, 2026
BW Offshore has unveiled a floating blue ammonia FPSO concept developed in collaboration with McDermott International, combining offshore production, carbon capture and direct export to convert surplus natural gas into lower-carbon fuel.
The floating production, storage and offloading (FPSO) concept is designed to process up to 3 million cubic meters of gas per day, producing more than one million tonnes of ammonia annually.
It incorporates carbon capture technology designed to capture and compress up to 99% of the CO₂ generated during production for export to geological sequestration or other approved uses.
BW Offshore said the concept is intended to align with prevailing international criteria for low-carbon hydrogen derivatives, with an estimated carbon intensity of around 0.5 tonnes of CO2 per tonne of ammonia. Options are available to further reduce emissions from onboard power generation systems.
The FPSO unit would be located close to offshore gas sources and CO2 storage sites. Natural gas would be transported via subsea flowline and converted onboard into hydrogen and then ammonia using a low-carbon process.
By placing ammonia production offshore, the concept avoids the land, permitting and infrastructure constraints associated with large onshore facilities. Liquefied ammonia would be stored in refrigerated tanks within the hull and offloaded directly to gas carriers, removing the need for pipeline or port infrastructure.
According to BW Offshore, demand for low-carbon fuels is rising in sectors where electrification is limited. The International Energy Agency has forecast that the use of low-carbon ammonia in power generation and maritime transport must increase significantly to meet emissions reduction targets.
The concept builds on BW Offshore’s experience in floating production and operations and forms part of its New Ventures portfolio focused on energy transition opportunities. McDermott contributes engineering, procurement, construction, installation and technology integration expertise.
BW Offshore said the solution could be structured through capital-efficient leasing models, offering flexibility for operators seeking to monetize surplus gas resources.
