ABB has entered into a term sheet agreement with SwitcH2 to provide automation and electrification solutions for a floating production, storage, and offloading (FPSO) unit that will produce green ammonia from green hydrogen. This initiative aims to meet the rising demand for low-carbon marine fuels. The FPSO will be located off Portugal’s coast, powered by renewable electricity through Power Purchase Agreements. It will feature a 300 MW electrolyzer, capable of generating up to 243,000 tons of green ammonia annually.
Under the agreement, ABB will supply a prefabricated eHouse, electrical distribution systems, and the ABB Ability System 800xA Integrated Control and Safety System (ICSS), ensuring secure and efficient offshore operations. These modular systems are designed for seamless integration with third-party equipment, including electrolyzers and ammonia synthesis units.
The FPSO will use treated seawater for electrolysis to produce green hydrogen, which will then be combined with nitrogen from the air to create green ammonia. This ammonia will be stored onboard and transferred to carrier ships for transport to ports, where it can be utilized as marine fuel or converted back to hydrogen for industrial applications.
Green ammonia is increasingly recognized as a viable solution for decarbonizing hard-to-abate sectors like shipping, which is responsible for about 2% of global greenhouse gas emissions. Front-end engineering and design work is anticipated to continue until summer 2026, with a Final Investment Decision expected by the third quarter of that year, followed by detailed engineering and construction in 2027.
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