U.S. offshore engineering and construction player McDermott and Norway’s BW Offshore are a step closer to making their floating low-carbon energy solution a reality, as they have secured a stamp of approval from DNV for their joint blue ammonia floating production, storage, and offloading (FPSO) concept.
BW Offshore’s blue ammonia FPSO concept, jointly developed with McDermott International, has received approval in principle (AiP) from DNV, which is seen as an important step towards floating low-carbon ammonia production at scale.
The Norwegian firm explains that this AiP represents an independent, risk-based assessment of the concept at an early stage of development, providing a basis for further design development, certification and classification.
The company emphasized: “This marks an important milestone in the development of our floating low-carbon ammonia solution and supports our ambition to become a leading provider of offshore low-carbon energy production solutions.Demand for low-carbon fuels is increasing, driven by decarbonisation efforts in sectors such as shipping and power generation.
“Offshore blue ammonia production can help meet this demand by pairing infrastructure-constrained gas resources with efficient production and export logistics, creating a secure and competitive long-term ammonia supply while unlocking value from offshore gas resources.”
The concept validation paves the way for scalable offshore ammonia production, which is perceived to be a key development as decarbonization pressures mount across the shipping and power generation sectors, and unlocks a competitive, long-term supply path for infrastructure-constrained gas resources.
BW Offshore underlined: “We would like to thank McDermott for the strong collaboration in developing the concept and DNV for its thorough and constructive review.
“With this milestone achieved, we look forward to working with oil and gas developers to progress the concept towards project realisation and, together with the right partners, move from concept development into execution.”