OSG Developing ATB for Transporting Captured Carbon
U.S. shipping company Overseas Shipholding Group (OSG) has set out to design a new vessel that will transport liquified carbon dioxide (LCO2).
In April, the Tampa, Fla.-based company was awarded a $3 million grant from the U.S. Department of Energy for engineering and design work in support of the project. The award will be used to develop the design of an articulated tug and barge unit (ATB) to be used to transport CO2 captured by emitters in the Greater Tampa Bay region and across the State of Florida to sequestration sites in the Gulf of Mexico.
This grant follows the company’s announcement in December 2023 of an award by the Department of Energy of another grant for the development of OSG’s proposed Tampa Regional Intermodal Carbon Hub (T-RICH). The T-RICH grant funds a study led by OSG to develop an intermediate storage hub at Port Tampa Bay for captured CO2. T-RICH would initially receive, store, and process two million metric tons of CO2 per year and could be scaled in the future to meet expanded volumes of captured CO2. The ATB, which is the focus of the current grant, would provide a marine transport solution for captured CO2 aggregated at the T-RICH hub terminal in Tampa, to be shipped in liquified form to developed, approved sequestration sites in the northern Gulf of Mexico region.
“The Department of Energy has encouraged the development of carbon capture and storage (CCS) systems as part of the United States’ goal to reduce CO2 emissions to achieve net zero carbon by 2050,” said Sam Norton, OSG’s President, and CEO. “CCS systems are expected to provide up to 30% of that total carbon emission reduction. OSG has an extensive track record as a leading provider of energy transportation of adopting new technologies and developing innovative solutions to meet our country’s energy needs,” Mr. Norton explained. “Transporting liquified CO2 is a natural next step into an exciting emerging market, consistent with OSG’s expertise with liquid cargoes.”
Jeff Williams, OSG’s Director of CO2 Transport Solutions, said, “The development of a CO2 transport ATB, along with the previously awarded hub storage terminal grant at Port Tampa Bay, provides a comprehensive solution for Florida’s largest emitting industrial facilities to be part of the nation’s response to the impacts of climate change to which Florida’s residents and sensitive ecosystems are most vulnerable. OSG’s solution will help accelerate the adoption of carbon emission reduction plans in Florida, result in improved health of affected communities, create hundreds of new jobs, and bring innovative and transformative technologies to Florida.”
“The State of Florida presents a unique opportunity for the transportation of liquified CO2. Florida has the country’s fourth largest CO2 emissions from power generation and industrial facilities but has no pipeline system capable of transporting captured CO2 out of state,” Williams continued. “OSG’s proposed T-RICH hub site at Port Tampa Bay would aggregate and store CO2 captured for loading into the LCO2 ATBs operated by OSG. The cargoes would then be delivered to the northern Gulf of Mexico, which has the largest confirmed capacity for safe, deep, permanent underground sequestration of captured CO2.”