DNV grants Approval in Principle to BW Offshore and McDermott floating blue ammonia concept

DNV has granted Approval in Principle (AiP) to a floating blue ammonia production, storage and offloading (FPSO) concept jointly developed by Norway-based BW Offshore and US-based McDermott International.

The approval, reported on October 2, 2026, allows the offshore low-carbon ammonia concept to progress towards further design development.

An AiP is an independent, risk-based assessment conducted during the early stages of a project. It provides a basis for subsequent design development, certification and classification.

FPSO designed to produce more than 1 million tonnes of ammonia annually

The floating ammonia FPSO was unveiled in February and is designed to process up to 3 million cubic metres of natural gas per day and produce more than 1 million tonnes of ammonia annually.

The concept would convert natural gas supplied from offshore fields into hydrogen and subsequently into ammonia. Its carbon capture system is designed to capture and compress up to 99% of the CO2 generated during production.

The captured CO2 could then be transported for geological storage or other approved applications.

The concept has an estimated carbon intensity of around 0.5 tonnes of CO2 per tonne of ammonia, with additional options available to reduce emissions from onboard power generation.

Offshore production targets infrastructure and logistics challenges

The proposed FPSO would be located near offshore gas fields and potential CO2 storage sites. According to BW Offshore, this approach could reduce the land requirements, permitting needs and infrastructure investment associated with large onshore ammonia plants.

The company said offshore blue ammonia production could connect infrastructure-constrained gas resources with production and export facilities, supporting long-term ammonia supply and creating value from offshore gas resources.

BW Offshore plans further project development

BW Offshore plans to work with oil and gas developers and other potential partners to advance the concept towards possible project execution.

The company credited McDermott for its collaboration and DNV for its review of the concept.

BW Offshore has previous floating ammonia AiP experience

The approval is not BW Offshore’s first DNV AiP for a floating ammonia production concept.

In 2023, DNV approved an industrial-scale floating green ammonia unit developed by BW Offshore and SwitcH2. The approval covered areas including structural integrity, mooring, ammonia production, storage and cargo handling.

DNV had also approved H2Carrier’s P2XFloater green ammonia concept the previous year.

Methane leakage remains a consideration for blue ammonia

Blue ammonia is produced from natural gas using carbon capture and storage. While the process is designed to reduce emissions associated with hydrogen and ammonia production, methane leakage across the natural gas supply chain can affect its overall climate impact.

Academic research has highlighted the importance of limiting methane leakage to maintain the emissions performance of blue ammonia.