ABB has signed a term sheet agreement with SwitcH2 to provide solutions for SwitcH2’s FPSO unit
ABB has signed a term sheet agreement with SwitcH2 to engineer and provide automation and electrification solutions for SwitcH2's floating production, storage and offloading (FPSO) unit, committed to producing green ammonia from green hydrogen to sustain future demand for low-carbon marine fuels
The FPSO facility will be stationed off the coast of Portugal and powered by certified renewable electricity from the national grid under a Power Purchase Agreement, featuring a 300 MW electrolyser with the ability to produce up to 243,000 tonnes of green ammonia annually.
ABB, as part of the term sheet agreement, plans to provide a prefabricated eHouse, electrical distribution systems and ABB Ability System 800xA Integrated Control and Safety System (ICSS) with complete cyber-security integration. These systems will help ensure that offshore operations are safe, efficient, and reliable. ABB's solutions can fully integrate with third-party equipment such as electrolysers and ammonia synthesis units.
Saskia Kunst, CEO of SwitcH2, said, “This collaboration represents a key step in advancing offshore production capabilities for next-generation marine fuels. By integrating ABB’s advanced electrification and automation systems, we are demonstrating how technology-driven partnerships can accelerate innovation, shaping the future of energy at sea.”
The FPSO will use treated seawater and electrolysis to produce green hydrogen, which will then be combined with nitrogen that has been extracted from the air to create green ammonia. Once synthesised, the ammonia will be condensed and stored onboard before being transferred to carrier ships via a floating hose system for transport to ports, where it will be used as either marine fuel or cracked back into hydrogen for industrial use.
Green ammonia is becoming a scalable solution for decarbonising hard-to-abate sectors, including shipping, which contributes to 2% of global greenhouse gas emissions.
Per Erik Holsten, president of ABB’s Energy Industries division, said, “As with other hard-to-abate industries, we are committed to helping the marine sector operate leaner and cleaner. Our leading technologies in automation and electrification will enable this project to run with greater efficiency. Green ammonia offers a technically viable method for decarbonising marine transport, and this FPSO concept showcases how renewable energy can be leveraged to unlock low-carbon energy value chains.”
Front-end engineering and design (FEED) work is expected to be completed by summer 2026, with a Final Investment Decision (FID) due by the third quarter of the same year, followed by detailed engineering and construction in 2027.
