McDermott and BW Offshore join forces on offshore ammonia production

Industry players McDermott and BW Offshore have entered into a collaboration to advance the technical and commercial viability of offshore blue ammonia production.

The collaboration will leverage the expertise of both companies to advance the development of low-carbon ammonia production aboard a floating production storage and offloading (FPSO) facility, McDermott said, noting that FPSOs have the potential to unlock multiple benefits for ammonia production, including advantages in environmental, health and safety, schedule certainty and competitive levelized costs of ammonia.

BW Offshore will contribute its expertise in FPSO solutions to the partnership, while McDermott will contribute its technical knowledge and project execution capabilities and leverage its global fabrication assets and modularized solutions.

Vaseem Khan, Senior Vice President of Global Operations at McDermott, commented: “This is a unique collaboration that makes important strides to progress the energy transition by advancing a viable pathway for offshore blue ammonia production. Our offshore module design and fabrication capabilities and low carbon process expertise fits perfectly with BW Offshore’s FPSO know-how, and we are aligned in our commitment to developing sustainable energy and progressing the energy transition.”

Fredrik Savio, Business Unit Manager of New Ventures and Technology at BW Offshore, stated: “Harnessing McDermott’s one hundred years of offshore expertise and relationships with leading technology providers, as well as BW Offshore’s leading FPSO technology, we aim to advance offshore blue ammonia production. This collaboration with McDermott underscores our mutual commitment to sustainable energy solutions.”

In other recent news, CB&I, a wholly-owned unrestricted subsidiary of McDermott, and shipbuilder Hanwha Ocean received approval in principle (AiP) for the design of a cargo containment system and an 80,000 cbm liquid hydrogen (LH2) carrier from classification society DNV. The AiP was formalized on September 17, 2024.