A new agreement between SBM Offshore and Microsoft has been established to develop what the two companies describe as a 'blueprint for global expansion' of artificial intelligence (AI)-enabled offshore floating power generation units. This collaboration seeks to combine Microsoft’s advanced AI systems with SBM Offshore’s expertise in deepwater ocean infrastructure to create offshore gas-based floating power units. These units are intended to integrate with national energy grids and provide electricity for various industrial applications, particularly in areas where reducing carbon emissions poses greater challenges.
In a joint statement, the companies articulated their aim to "accelerate the adoption of floating power generation units to meet the growing demand for clean, reliable and dispatchable electricity for electrification and regional grid integration." They highlighted that their initiative aims to tackle the limitations of traditional methods in decarbonising industrial energy use.
The first phase of this initiative will focus on deploying SBM Offshore’s floating gas power solutions that include integrated carbon capture and storage (CCS). This phase will be concentrated on the UK Continental Shelf and the Norwegian Continental Shelf. As part of this effort, SBM Offshore and Microsoft plan to collaborate with Norway-based energy start-up Ocean-Power, which is actively working on establishing offshore and near-shore power hubs. These hubs utilise gas turbines in conjunction with carbon capture technology to enhance efficiency and decrease CO2 emissions.
While the overarching goal is to create 'carbon-free' energy units, the specifics regarding the development and implementation of the offshore power generation units equipped with CCS remain ambiguous. Microsoft has indicated that its contributions will include "AI-powered asset lifecycle assessment, real-time carbon measurement, reporting and verification, and predictive maintenance powered by Microsoft Copilot, Copilot Studio, Azure AI Foundry and Fabric." These tools are expected to enhance the reliability, flexibility, and efficiency of power delivery while presumably supporting an increase in clean energy generation. However, further clarification on how these advancements will manifest in boosting clean energy was not provided in their announcement.
This recent agreement follows closely on the heels of another AI-focused partnership formed between Microsoft and Lloyd’s Register (LR), announced in early March 2025. In that engagement, LR revealed its intention to leverage Microsoft’s Azure OpenAI service and algorithms to facilitate the adoption of nuclear power within the maritime sector. LR has expressed ambitions to utilise AI to bridge the existing divide between land-based and maritime nuclear applications in the context of decarbonisation initiatives across the shipping industry.
Source: Noah Wire Services