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OSG wins $400K DOE backing to study Tampa’s carbon hub development

U.S.-based tanker owner Overseas Shipholding Group (OSG) has obtained a $400,000 grant from the United States Department of Energy (DOE) to study the development of its proposed Tampa Regional Intermodal Carbon Hub (T-RICH).

OSG 204 Image Courtesy: Business wire/OSG

The study is intended to evaluate the commercial feasibility of developing an intermediate storage hub at Port Tampa Bay for CO2 captured from industrial emitters across the State of Florida.

T-RICH would receive, store, and process two million metric tons of CO2 per year, which would be transported by OSG vessels across the Gulf of Mexico for permanent underground storage. This storage and transport hub will be the first of its kind in the nation and could be scaled to meet expanded volumes of captured CO2.

“Overseas Shipholding Group has an extensive track record of adopting industry leading new technologies and developing innovative solutions in energy transportation,” said Sam Norton, President and CEO of OSG.

“Transporting liquified CO2 is a natural next step in an exciting emerging market, consistent with OSG’s expertise with liquid cargoes.

“The development of a hub storage terminal at Port Tampa Bay will provide a comprehensive solution to allow Florida’s industrial facilities to be part of the nation’s response to the impacts of climate change and to which Florida is vulnerable.”

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“OSG is a longtime strategic partner and provider of maritime transportation services at Port Tampa Bay,” noted Paul Anderson, Port Tampa Bay President and CEO.

“This grant will make an important contribution as we work with OSG in exploring the development of a carbon distribution hub.”

“Florida’s total CO2 emissions from power generation and industrial facilities is among the largest in all states in the country. But Florida has no pipeline system capable of transporting captured CO2,” said Norton.

“OSG’s proposed hub site at Port Tampa Bay would aggregate and store CO2 captured from emitters for loading onto specialized liquified CO2 vessels to be operated by the Company. These vessels would then deliver their cargoes to the northern Gulf of Mexico, which has the largest confirmed capacity for safe, deep, permanent underground sequestration of captured CO2. ”

The DOE is encouraging the development of carbon capture and storage systems as part of the United States’ goal to reduce CO2 emissions to achieve net zero carbon by 2050.

CO2 transport serves as a linchpin connecting various sectors, offering a conduit to manage and repurpose carbon emissions generated from industrial processes and energy production.

It facilitates the capture of carbon dioxide emissions at the source, such as power plants and industrial facilities, redirecting them away from the atmosphere where they contribute to climate change. This captured CO2 is then transported to designated sites for storage, utilization, or even repurposing as a feedstock for green fuels—a process integral to the circular economy.

Carbon capture and storage systems are expected to provide up to 30% of the total carbon emission reduction planned by the U.S.

Creating this supply chain aims to connect Florida to the fast-maturing CO2 industry, help improve air quality for all Florida residents, and provide hundreds of new jobs involving innovative technology and infrastructure in Florida to support carbon capture, storage, and transport systems.