Harnessing cutting-edge technologies to shape next-generation FPSO future

The global offshore energy industry’s floating production solutions have come a long way from their humble beginnings and seem to be poised to continue their evolution driven by the need to tap deeper into challenging offshore environments buttressed by growing energy demand, rising security of supply concerns, and increasing climate change prompts to pivot toward sustainability. While floating production storage and offloading (FPSO) units continue to dominate the deepwater offshore oil and gas projects’ scene, these systems are being adopted for offshore green energy production to unleash clean power from renewables.

With the exploration and production activities in deepwater and ultra-deepwater offshore fields continuing to spring up, the innovations in FPSO technology to develop hydrocarbon reserves in remote environments previously considered inaccessible are anticipated to pave the way toward a zero-emission future of offshore oil and gas production.

Trackers of floating energy production trends, including Energy Maritime Associates (EMA), seem confident in their assessment that the floating production systems construction market is set for an uptick with multiple awards anticipated for large floating production units, including massive FPSOs, in the coming period.

The activity in the FPSO market was going at a snail’s pace at the beginning of 2024 with the only large order being for Cedar LNG in Canada, said to be the first floating liquefied natural gas (FLNG) facility in North America, entailing deals of $1.5 billion for Samsung and $800 million for Black & Veach. This project is facing legal challenges over Steelhead LNG’s patent infringement accusations in Korea and British Columbia.

Meanwhile, things in the floating market started heating up later on, as Karmol placed an order with Singapore’s Seatrium in March 2024 for three FSRU conversions, with an option for a fourth unit, and Brazil’s Petrobras followed suit in May 2025 by tasking the Singapore-based firm with the construction of $8.15 billion FPSO pair.

The Brazilian state-owned energy giant also confirmed plans to deploy 14 new FPSOs over five years, supporting EMA’s predictions of many more orders being in the pipeline for floating production units, including multiple FPSOs for Petrobras in Brazil, new frontier regions in South America, and mature areas in West Africa like Angola and the Ivory Coast.

Recently, Petrobras hand-picked Wood to deliver design concept studies and recommendations that will allow it to optimize performance and reduce emissions to future-proof FPSOs by changing and enhancing the design of the traditional vessels to reduce persons on board, minimize risks, and optimize FPSO electrification strategies, curbing its GHG footprint in the process.

Since offshore energy operators, like Petrobras, expect their newbuild FPSOs to feature decarbonization solutions and technologies supporting and enabling the road to net zero goals, the FPSO market players, like MODEC, are determined to tackle power generation issues, which have been pinpointed as the main culprit for greenhouse gas (GHG) emissions, accounting for a staggering 65% of the carbon footprint.

In line with the methods to enable greener shipping operations, greater efficiency gains, digitalization spike, and GHG emissions cuts are seen as the enduring tools in the FPSO decarbonization quest, given the surge in energy demand within emerging economies, particularly those in Asia, where market analysts and industry heavyweights, such as TotalEnergies, anticipate the next wave of energy market growth to be centered.

The key four pillars of economically feasible next-generation FPSO models are expected to rest on reduced energy usage through digitalization and automation enabling energy efficiency, minimizing waste and GHG emissions, carbon capture utilization and storage (CCUS), and clean power with energy storage systems (ESS).

Employing digital twins is seen as a useful technological tool in ensuring real-time monitoring and predictive maintenance, optimizing operational efficiency, and reducing downtime and costs while enhancing the safety of offshore operations.

As part of its sustainability enhancement mission, Yinson Production is incorporating zero-emission FPSO technologies into its newbuilt FPSO design, as illustrated by the piloting of post-combustion carbon capture technology onboard FPSO Agogo. In addition, the company is also retrofitting existing units when possible and making use of the digitalization of asset lifecycle management to improve operational efficiency.

Yinson is determined to cut its emissions across scopes 1, 2, and 3 through internal optimization, adoption of innovative emission-reducing technologies, and the use of renewable energy where possible. Given its decarbonization agenda, the firm is keen on exploring carbon removal opportunities and the utilization of carbon compensation mechanisms.

The Malaysian player’s renewable energy pipeline is also growing, as demonstrated by 557 MW installed capacity, 540 MW capacity under construction, and 365 GWh of renewable energy generated this year. As part and parcel of its climate aspirations to be carbon neutral by 2030 and net zero by 2050, the company is looking into the development of nature-based solutions projects in Malaysia.

Most analysts tend to agree that the best way to come to grips with the double whammy of energy security and sustainability woes entails the integration of emerging decarbonization technologies and multiple greener sources, including CCS and renewables, such as wind and solar, into FPSO operations to slash emissions and reach net zero aspirations.

The global energy mix, while dominated by fossil fuels, shows the renewables’ share is on the rise, fueling flames of the desire to achieve a step change in global efforts toward meeting net-zero goals. According to an FPSO market report from Allied Market Research, the floating production storage and offloading market, which was valued at $25.2 billion in 2023, is set to reach $46.2 billion by 2033, growing at a CAGR of 6.3% from 2024 to 2033.

The security of supply seems to be the king of the energy market even though the inner workings of the energy industry may appear to be a mass of contradictions, sometimes with a widening divide that to some may seem unsurmountable, given the gap between those who want to put an immediate end to fossil fuels and others who believe these fuels, mainly oil, gas, and LNG, cannot be shaken off so easily and will be needed to keep the lights on for decades to come.

As OPEC’s ‘2024 World Oil Outlook 2050’ estimates that cumulative oil-related investment requirements will reach up to $17.4 trillion during the entire 2024–2050 period, or around $669 billion a year, a higher focus on emission reduction measures and integration of low-carbon and green energy technologies in the oil and gas production process is perceived to be the key to unlocking access to required funding and finance for these hydrocarbon projects.

With this at the forefront, newbuild FPSOs’ designs are anticipated to continue sporting an all-electric concept, with certain alterations made to achieve more efficient power generation systems, fully optimized process plant equipment, and strategies to combat emission sources such as flaring, venting, and fugitive gases. New FPSO concepts are already being developed as confirmed by Malaysia’s MISC, which presented its newbuild MMEGA FPSO design, with the potential to curb typical CO2 emissions by almost 40%.

Another innovative use of FPSOs comes from SwitcH2, which designs floating production units for green hydrogen and ammonia, exploiting onshore and offshore wind, solar, and wave energy for renewable energy system integration through the design, construction, and operation of a 300 MW electrolyzer and ammonia synthesis unit on an FPSO.

“Green ammonia, with its high energy density and ease of storage, is the preferred choice to decarbonize the global shipping industry. With its already established role in the fertilizer market, green ammonia’s potential growth is staggering, projected to be six times larger by 2050. The urgent demand from global shipping makes rapid supply expansion necessary in order for green ammonia to play its key role in the shift towards sustainable, net-zero transportation,” outlined SwitcH2.

While elaborating that its concept reduces the intermittent nature of standalone wind, solar, or wave sources, making room for the development of standalone off-grid solutions, and playing into the countries’ energy independence agendas, the company claims that its concept is suitable for deployment in offshore areas worldwide, as the FPSO can be moored in both shallow and ultra-deep waters.

Bluewater Energy Services, which claims to be committed to integrating technology for sustainable energy highlighted innovative strategies to reduce emissions, embrace renewable efforts, and ensure a resilient and realistic energy transition confirming that it will be supporting the world’s energy needs both in a cleaner fossil fuel sector and the development of innovative renewable energy solutions like floating wind, floating solar and others.

To bring clean energy FSOs to the market for low-carbon ammonia, clean hydrogen, and carbon capture utilization and storage, the firm joined forces with Purus to provide a single customer interface to address all engineering, procurement, construction, installation, and commissioning works required to deliver floating storage for low-carbon cryogenic cargoes, including the subsequent operations and maintenance needed to unlock long-term access to new markets.

Bluewater emphasized: “With the shift to a cleaner energy economy underway, the global pursuit of low-carbon fuels is expected to drive strong growth in the ammonia, hydrogen and carbon supply chains over the next several years. With major export and import regions separated by the oceans, maritime transport is forecast to play a dominant role.

“However, these new fuels and cargoes will bring new distribution challenges for our customers, which the alliance seeks to address through the application of bespoke floating offshore storage terminals. The Clean Energy FSO can offer greater flexibility and speed-to-market than conventional onshore storage tanks, accelerating the global energy transition.”

Thanks to this alliance, Purus is said to be able to provide customers with an end-to-end floating pipeline solution for energy transition cargoes, including international maritime transport, floating storage, FSO-to-shore, breakbulk services, and inland barging.

“By adding the Clean Energy FSO solutions and services, to the current F(P)SO fleet and projects portfolio, Bluewater continues, as ever, to innovate, optimise their offshore solutions including its fleet renewal in the new energy era,” explained Purus-Bluewater alliance, which will strive to deliver on the duo’s shared vision to enable the clean energy transition and to bring low-carbon energies to the world.

While an increased level of automation to downsize the number of people on board an FPSO is seen as a way to achieve energy savings and emission cuts through remote monitoring and diagnostics connected to an onshore central control room with digital transformation technologies supporting onboard manning reductions, a new source has also emerged to help reach energy efficiency and power these floating production assets with renewable energy by making use of floating wind turbines anchored in the vicinity of the FPSO to produce the electrical power needed to power it.

One example of such use of renewable energy is encapsulated in Equinor’s Hywind Tampen project, which is designed to provide electricity for two floating production facilities known as Snorre A and B and three fixed production facilities called Gullfaks A, B, and C. Innovations have made similar technology available for FPSOs with designs that enable assets to be towed to their final destination with a wind turbine installed and all set to be moored to the seabed once it reaches its location.

Therefore, this type makes relocation and redeployment easier once assets are no longer required at the site where they were installed, allowing the FPSOs and floating wind turbines to be relocated and redeployed to another site. While Japan’s MODEC is looking into similar offshore wind power solutions, the Netherlands-based SBM Offshore is pursuing these options with a renewable energy product line working on such FPSO tools, and Bluewater already has a floating wind tension leg platform (TLP) concept.

Those interested in decarbonization endeavors point out that there are many possibilities in handling the intermittent nature of renewables, including, but not limited to, the combination of hydrogen and energy storage systems along with a hybrid power generation system that has clean gas power on board the vessel alongside wind turbines, which could vary in size and number depending on the FPSO’s energy requirements. Aside from this, carbon capture is also seen as an important tool in curtailing emissions.

As the pressure mounts on global climate goals, energy demand continues to grow too, with many agreeing that the composition of the energy mix, especially beyond 2030, remains uncertain since even scenarios aligned with a 1.5 degrees global warming target still seem to require fossil energy to meet the global energy demand towards and beyond the mid-century.

MODEC and Altera Infrastructure are also among FPSO players which have set their caps on addressing the pressing challenges of the energy transition era by accelerating the shift toward a more sustainable future while supporting the security of power supply.

Based on current predictions, oil and gas, especially LNG, are anticipated to remain in demand even after 2050, thus, innovation and technology developments are perceived to be needed to unleash untapped low-carbon barrels and unlock the green power gates. MODEC, which continues to expand its digitalization moves, is looking at floating offshore wind, as another tool in its decarbonization toolbox.

Aside from eyeing renewables, the floating production solutions provider is also keeping an eye on other low-carbon options, such as hydrogen, to combine them with the innovation in FPSO technology. Saipem is also looking into floating nuclear-powered units.

The UK-based Altera Infrastructure is also bent on employing multiple emission-curbing technologies, such as power from shore alongside the blue power hub, renewables, and carbon capture and storage. All of these, especially the last one, are perceived to be critical industry pieces for Norway and Europe to meet their climate targets.

The UK company is convinced that the Norwegian Continental Shelf (NCS) is well-suited to receive CO2 on a large scale from across Europe. While emphasizing that technology is not a barrier, the firm pinpointed the need for predictable policy and regulatory frameworks.

SBM Offshore revealed its emissionZERO program in 2020 to pursue near-zero emissions through a near-zero FPSO, which it sees as the first milestone and a key pillar of the emission-zero road map. The Dutch player has been progressing its concept to have a solution ready for the market in 2025.

SBM Offshore is confident in its ability to leverage its existing skills and expertise in traditional oil and gas deepwater floating systems to alternative energies in pursuit of emission cuts with the ramp-up of floating offshore wind, hydrogen, and ammonia, bringing emission cuts by allocating its tools and resources across the lifecycle of its products.

Despite the floating offshore wind market’s slower growth, the Dutch player is certain the innovative approach it is applying will lend a helping hand in opening new horizons for floating wind and sustainable power sources.

Some of the firm’s key achievements on the emissionZERO FPSO entail a collaboration agreement with Mitsubishi Heavy Industries on carbon capture and the statement of qualified technology; the qualification of a deep water suction system for the use of colder water on the topside; and the use of digital technologies (advanced analytics and predictive maintenance) to optimize energy consumption, reduce equipment trips and associated flaring.

SBM Offshore’s emissionZERO program will enable the Dutch firm to operate new FPSOs with reduced carbon intensity, resulting in between 8-12 kg of CO₂/barrel of oil equivalent by curbing carbon emissions. The partnership, which the firm inked with Mitsubishi Heavy Industries, allows FPSO carbon capture technology developments to be onboarded to its future units, which is estimated to secure a further direct reduction in carbon emissions of up to 70%.

With this at the forefront, SBM Offshore sees new-generation solutions as a straight ticket for itself and the industry to the next level of decarbonization, slashing greenhouse gas emissions and minimizing the impact on the climate. Given its participation in both alternative energy developments and decarbonization efforts, the Dutch firm claims to be on track to meet its 2030 targets and halve its CO₂ emissions intensity.

Since SBM Offshore has set its cap on accelerating emissionZERO in the coming years and curbing the carbon intensity in its value chain, the company has set a target to achieve 1.57 million standard cubic feet per day of flaring in 2024, for scope 3 downstream leased assets.

Taking into account energy security, the Dutch player believes fossil fuels to be needed alongside new investments to offset production decline in aging assets. The company considers deepwater oil and gas developments to be economical and environmentally resilient.

With deepwater developments presented as the lowest in average GHG intensity, at 10 kg/boe, and amongst the most competitive, at an average breakeven price of $40 per barrel, SBM Offshore believes deepwater field developments should be the preferred oil supply source going forward.

Under its emissionZERO program, SBM Offshore is developing a range of emission-reducing components and technologies for integration onboard FPSOs for further carbon-intensity reduction such as the post-combustion carbon capture module for use onboard FPSO vessels, which has obtained DNV’s statement of qualified technology and can now be proposed and customized for specific projects and clients.

SBM Offshore sees a strong market for FPSOs, which serve as the core product of its transition as they represent a place where energy demand meets reliability and greenhouse gas efficiency. The company is also investing in the early stages of offshore hydrogen, ammonia, and lithium production studies alongside robotics.

These efforts aim to enhance safety and efficiency within the firm’s operational fleet. In addition, the Dutch player is set on powering the winds of change with Ekwil, its joint venture with Technip Energies, to pursue growth in floating offshore wind power.

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