Ammonia Produced on an FPSO Addresses the Energy Trilemma and KBR has a Solution
By Henrik Larsen
Offshore ammonia produced on an FPSO (Floating Production, Storage and Offloading) unit can transform the global energy landscape. Although a full-fledged ammonia-producing FPSO unit is not operational yet, KBR, with its history of frontline innovation in ammonia technology, has secured several conceptual studies for floating blue ammonia production from major shipbuilders in Asia and other stakeholders in the offshore business.
KBR’s innovative blue ammonia technology provides:
- Better capex and opex
- Efficient single train design
- Reduced equipment count, smaller footprint, and more effortless operation
These advantages are attractive for offshore production. KBR’s technology, combined with Samsung Heavy Industries’ expertise in designing mega floating vessels, is already being utilized in a conceptual study, and is poised to meet future demand.
Traditionally, on an FPSO oil platform in remote deep water with a lack of pipeline infrastructure, associated gas is compressed and injected back into the oil reservoir or, in some instances, flared, as oil is typically the targeted product. Today ammonia is synthesized on an onshore base as a standard, still mainly with natural gas as feedstock. Due to potentially lower feedstock costs and the ease of carbon dioxide sequestration, offshore players are seeking opportunities to install ammonia plants on ships, using stranded or associated gas as feedstock for offshore ammonia production. The projected significant increase in ammonia demand for mainly new uses provides a promising market outlook.
On an oil-producing FPSO, flaring the associated gas results in material carbon emissions. However, by utilizing natural gases and converting them to ammonia and by reinjecting the formed CO2 byproduct into reservoirs, the facility can potentially help to significantly reduce the carbon footprint and to also enhance the oil production.
Resolving the energy trilemma
Ammonia production on an FPSO unit can effectively address the three key pillars of the energy trilemma – sustainability, energy equity, and energy security. Here is a look at each:
Sustainability
Setting up an ammonia unit offshore can be done without land clearing and freshwater consumption. As a result, both resources are preserved, ensuring a sustainable model for ammonia production.
Compared to traditional land-based ammonia plants, the offshore oil production facilities can significantly lower CO₂ emissions. By capturing carbon dioxide, which is otherwise potentially released into the atmosphere from the FPSO, ammonia is produced, resulting in low carbon emissions. In addition, methane emissions are also reduced from the FPSO, as associated gases such as ethane, propane, etc. from the wells are utilized for ammonia production, eliminating flaring, further contributing to cleaner air and lower ocean pollution.
Energy equity
The underdeveloped regions face food security issues due to a lack of infrastructure, and importing fertilizers (let’s not forget that ammonia is the main base material for nitrogen fertilizer production) or hinders economic development. Using modular construction, KBR’s ammonia units can be set up quickly on an FPSO and accelerate the access of these underserved areas to ammonia as fertilizer and/or to ammonia as a fuel for clean power generation, without the financial burden of import.
This also minimizes safety risks to communities located nearby resulting in equitable development without compromising on safety.
Energy security
Ammonia production on FPSO units taps into remote energy sources such as flared gas or stranded gas. Besides, the FPSO design allows relocation and adaptability to the depleting resources and changing geopolitical conditions. Such operational flexibility ensures resilience in energy supply chains.
Safety and regulatory measures
To ensure ammonia systems meet the same reliability as conventional fuels, the International Maritime Organization (IMO) approved interim guidelines for the safety of ships using ammonia as fuel. This covers fuel containment, toxicity mitigation, and fire protection.
Also, IMO’s Future Fuels and Technology Project is evaluating the viability of ammonia as a sustainable marine fuel in partnership with the Republic of Korea, and its use on floating platforms, with the goal of supporting greenhouse gas reduction across international shipping.
- The IMO is actively working towards revising the International Code of Safety for Ships Using Gases or Other Low-flashpoint Fuels (IGF) and the International Code of the Construction and Equipment of Ships Carrying Liquefied Gases in Bulk (IGC) to include ammonia formally. This includes removing current prohibitions on using ammonia as fuel, which will consequently open the door for ammonia-fueled ships.
- The International Maritime Organization (IMO) has set a goal for international shipping to achieve net-zero greenhouse gas (GHG) emissions by or around 2050, by way of defining intermediate targets also for 2030 and 2040[1]. With these regulatory measures and the development of ammonia-fueled engines, a new and larger market for low-carbon ammonia will unfold.
However, in its recently held meeting, IMO’s Marine Environment Protection Committee (MEPC) has deferred the adoption of the net-zero framework by a year. This framework implements GHG pricing mechanism to regulate the carbon intensity of marine fuels and the U.S. administration’s analysis of this costing approach has potentially resulted in this delay.
Conclusion
There is little doubt that the clean and low-carbon ammonia demand will increase and that offshore ammonia production could become a viable production option.
The greatest challenge of providing offshore ammonia production solutions to clients is that this option must be competitive with onshore blue ammonia production units and requires more legislation for safety and regulation. Therefore, more efforts are needed to convince energy developers and off-takers.
With approximately 30% of global LNG capacity delivered and 50% in ammonia solutions, KBR is well-placed to spearhead this development.
KBR, as a market leader, offers all possible options for ammonia production, such as SMR (Steam Methane Reforming) and ATR (Autothermal Reforming) in onshore blue ammonia production and electrolyzers coupled with ammonia synthesis for green ammonia production.
KBR, with its strong legacy in onshore business, offers a one-stop solution for both onshore and offshore ammonia production, supporting customers worldwide in developing innovative solutions.
