McDermott and BW Offshore have entered into a collaboration to advance the technical and commercial viability of offshore blue ammonia production aboard a floating production storage and offloading (FPSO) facility.

The strategic partnership aims to enable a viable pathway for offshore blue ammonia production, contributing to the global transition to low-carbon energy sources, and reinforcing both companies' commitment to sustainable energy practices.

The collaboration will leverage the combined expertise of McDermott and BW Offshore to advance the development of low carbon ammonia production aboard FPSOs, which 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 and apply an innovative approach to offshore production facilities, while McDermott brings extensive experience in engineering, procurement, construction and installation (EPCI) across the energy sector and will contribute its technical knowledge and project execution capabilities, leveraging its global fabrication assets and modularized solutions.

"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,” said Vaseem Khan, Senior Vice President, Global Operations at McDermott.

Ammonia produced from renewable or low-carbon sources, commonly referred to as green and blue ammonia, supports global decarbonization because it can be used to provide carbon-free fertilizers, as an energy carrier or as a fuel.