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September 8, 2022

McDermott secures FEED contract for Gunvor’s green hydrogen terminal

McDermott’s unit will be responsible for providing the FEED of the ammonia tank and associated ISBL equipment.

Gunvor Petroleum Rotterdam, a subsidiary of Gunvor Group, has selected McDermott and its storage business CB&I to provide front-end engineering design (FEED) for the green hydrogen import terminal project in Rotterdam, the Netherlands.

Intended to provide green hydrogen to the Netherlands in 2026, the import terminal forms part of Gunvor’s efforts to transform its Rotterdam facility into a green energy hub.

Under the contract, CB&I will be responsible for providing the FEED of the ammonia tank and associated Inside Battery Limits (ISBL) equipment.

McDermott will also offer front-end engineering design work for the interconnecting pipeline, tie-ins, and the Outside Battery Limits (OSBL) scope.   

McDermott onshore senior vice-president Tareq Kawash said: “After successfully completing the feasibility study in 2021, we are well positioned to execute the next phase of this important green energy project.

“Our ability to bring together McDermott’s decades of project execution experience with CB&I’s expertise in design, engineering, and construction of ammonia tanks make us the ideal partner for Gunvor.”

McDermott said a project execution cost estimate will be developed as part of the FEED. It is intended for a potential conversion of the FEED contract into an engineering, construction, and procurement (EPC) contract for the project’s implementation phase.

CB&I senior vice-president Cesar Canals said: “This project represents a vital contribution to ensuring a reliable logistical chain for the growing green hydrogen market and ultimately meeting the Netherlands 2030 climate goals.

“As a world leader in the design and build of storage terminals, CB&I, together with McDermott, bring safety, quality, and assurance.”

McDermott plans to execute the project work from its office in The Hague, the Netherlands. It will also be carried out at CB&I’s office in Plainfield, Illinois in the US.

Gunvor and its partner Air Products plan to source ammonia produced from renewable sources outside the Netherlands.

The sourced ammonia will then be converted to hydrogen at the site prior to distributing it into the Netherlands, Germany, and Belgium.

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