Swiss technology company ABB has signed a term sheet agreement with Dutch renewable energy company SwitcH2 to engineer and supply automation and electrification solutions for SwitcH2’s floating production, storage and offloading (FPSO) unit 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 .
As part of the term sheet 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. These modular, ready-to-deploy systems are expected to help ensure reliable operations offshore, according to ABB.
ABB added that its solutions will fully integrate 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,” Saskia Kunst , CEO of SwitcH2, commented.
“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.”
As explained, 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. It will then be 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 scalable solution for decarbonizing hard-to-abate sectors such as shipping, which contributes approximately two percent of global greenhouse gas emissions.“
“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,” Per Erik Holsten , President of ABB’s Energy Industries division, said.
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.
Earlier this year, SwitcH2 welcomed a new shareholder that would help it finalize the design of its 300 MW offshore floating ammonia project. In February 2025, chemical engineering and construction company JORD invested in SwitcH2, joining investors such as BW Offshore and Dutch Oceans Capital.
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