Japanese companies MODEC and Toyo Engineering Corporation (TOYO) have achieved a significant milestone in the development of sustainable energy solutions with the approval in principle (AiP) from the American Bureau of Shipping (ABS) for their blue ammonia floating production storage and offloading (FPSO) unit. This innovative design incorporates onboard carbon capture technology and represents a major advancement in floating ammonia production.

The Blue Ammonia FPSO, developed jointly by MODEC and TOYO, is designed to produce ammonia using gas supplied by a nearby oil and gas FPSO. Traditionally, associated gas from oil and gas production has been reinjected into reservoirs without direct applications. However, this new FPSO aims to harness that gas to generate and store blue ammonia while integrating a carbon capture and storage (CCS) system. The onboard CCS technology will capture CO2 emissions generated during the conversion of associated gas to ammonia, as well as emissions from gas turbine generators (GTG). This approach is expected to significantly reduce the FPSO’s carbon footprint during ammonia production, making it a more environmentally sustainable solution.

A key component of the FPSO's functionality is its hull, which has been developed in collaboration with Mitsubishi Shipbuilding. The hull is specifically designed to store and offload the produced ammonia efficiently, ensuring a streamlined and safe process. MODEC has emphasized that the AiP from ABS is an important initial step toward the commercialization of floating alternative energy solutions. The company plans to further refine and mature the concept to overcome key commercialization challenges and ultimately offer a cost-effective and reliable energy supply option.

This project is also a critical component of MODEC’s Mid-term Business Plan for 2024-2026, which includes the “Concept Design of Floating Alternative Energy Production Facility” as a major initiative. The company aims to lead the development of floating solutions that support the global transition to low-carbon energy sources, demonstrating its commitment to sustainability and innovation.

The momentum for ammonia FPSO technology is growing worldwide, with other companies also exploring similar concepts. In early 2024, ABS granted AiP to South Korean shipbuilder Samsung Heavy Industries (SHI) for its Samsung Ammonia Blue FPSO concept. This design incorporates advanced safety features and is expected to produce 1.2 million tonnes of ammonia per year. SHI’s modular offshore ammonia production facility is intended to dramatically cut carbon emissions while addressing land and infrastructure constraints, ultimately reducing construction time and costs.

The approval of MODEC and TOYO’s Blue Ammonia FPSO underscores the increasing focus on ammonia as a viable alternative energy source. By leveraging CCS technology and offshore production capabilities, this project represents a pioneering approach to low-carbon fuel production. As industries worldwide seek to reduce emissions and transition to cleaner energy, floating ammonia production could play a key role in shaping the future of sustainable energy supply.