A new design for an ammonia floating production storage and offloading (FPSO) unit that features onboard carbon capture technology for blue ammonia production has received approval in principle (AIP) from the American Bureau of Shipping (ABS).
The design comes from MODEC in collaboration with Toyo Engineering Corporation (TOYO). ABS completed design reviews based on class and statutory requirements.
“Blue ammonia has significant potential to lower the emissions of offshore operations. ABS is able to harness its extensive experience offshore alongside its global leadership in the classification of FPSOs to support the development of this potentially game-changing technology,” said Miguel Hernandez, ABS Senior Vice President, Global Offshore.
Koichi Matsumiya, MODEC, Executive Officer, Group CTO, said, “We have explored how we can leverage our expertise in producing low-GHG ammonia, a potential alternative energy source to oil and gas in the global energy mix. However, this development has also made us aware of the significant challenges that need to be tackled to commercialise the concept.”
“MODEC views this AIP as the first step in developing floating solutions for alternative energy production. We will continue to strive to refine and mature this concept, pursuing a safe and affordable alternative energy supply solution. This is part of our commitment to society to explore a sustainable future with innovation.”
Eiji Hosoi, TOYO President and CEO, said it has extensive expertise and a global track record of 87 ammonia projects.
“The innovative design of the ammonia FPSO enables offshore production of blue ammonia, a low-environmental impact fuel that is expected to contribute significantly to mitigating global warming,” he said. “By advancing the efficient use of resources and supporting the transition to a decarbonised society, we remain committed to driving sustainable energy solutions for the future.”
Onboard carbon capture (OCC) and treatment systems need to be integrated with other systems onboard, and the CO2 needs to be intermediately stored for later offloading to appropriate infrastructure, according to DNV.
For post-combustion systems, OCC involves cleaning of exhaust gases from CO2, separating it, and storing it onboard for eventual offloading, in various different forms depending on the technology (gas, liquid, or mineral). For pre-combustion, carbon is separated from the fuel to produce hydrogen and can be used in dedicated energy conversion machinery.
One major challenge is the current global capacity of CO2 transport and storage would not be sufficient to meet 2030 decarbonisation targets. A benchmark blue ammonia demand of 34 million tonnes would require 50 million tonnes of CO2 storage, according to the Zero Carbon Shipping body.
The US, Arabian Gulf, Norway, Australia and south-east Asia are likely to be major centres, combining their energy production expertise with favourable geological conditions.
Around 8 million tonnes of blue ammonia production annually is expected to be available by 2027/28.
