ABB has signed a term sheet agreement with SwitcH2 to provide automation and electrification solutions for a floating production, storage, and offloading (FPSO) vessel dedicated to producing green ammonia from green hydrogen.

The FPSO facility will be stationed off the coast of Portugal and powered by certified renewable electricity from the national grid under Power Purchase Agreements. It will feature a 300 MW electrolyzer with the potential to produce up to 243,000 tonnes of green ammonia annually.

Under the agreement, ABB intends to deliver a prefabricated eHouse, electrical distribution systems, and ABB Ability System 800xA Integrated Control and Safety System (ICSS) with full cybersecurity integration. The modular systems are designed to ensure safe, efficient, and reliable operations offshore, with ABB's solutions fully integrating with third-party equipment, including electrolyzers and ammonia synthesis units.

"This collaboration represents a key step in advancing offshore production capabilities for next-generation marine fuels," said Saskia Kunst, CEO of SwitcH2. "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 utilize treated seawater and use electrolysis to produce green hydrogen. This hydrogen will be combined with nitrogen extracted from the air to create green ammonia. Once synthesized, 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 can be used as a marine fuel or cracked back to hydrogen for industrial use.

Green ammonia is emerging as a potential solution for decarbonizing sectors such as shipping, which contributes approximately two percent of global greenhouse gas emissions, according to the International Energy Agency.

"As with other hard-to-abate industries, we are committed to helping the marine sector operate leaner and cleaner. Our technologies in automation and electrification will enable this project to run with greater efficiency," said Per Erik Holsten, President of ABB's Energy Industries division. "Green ammonia offers a technically viable method for decarbonizing 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 run until summer 2026, with a Final Investment Decision (FID) due by the third quarter of 2026. Detailed engineering and construction will then follow in 2027.