US energy transportation provider Overseas Shipholding Group (OSG) has been awarded a US$ 400,000 grant from the US Department of Energy (DoE) to study the development of a proposed Tampa Regional Intermodal Carbon Hub, known as T-Rich.
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 2m 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 US and could be scaled to meet expanded volumes of captured CO2.
Sam Norton, OSG President and CEO said: “Overseas Shipholding Group has an extensive track record of adopting industry leading new technologies and developing innovative solutions in energy transportation. 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.”
Paul Anderson, Port Tampa Bay President and CEO said: “OSG is a longtime strategic partner and provider of maritime transportation services at Port Tampa Bay. This grant will make an important contribution as we work with OSG in exploring the development of a carbon distribution hub.”
Norton continued: “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. OSG’s proposed hub site at Port Tampa Bay would aggregate and store CO2 captured from emitters for loading onto specialised 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 (CCS) as part of the US’ goal to reduce CO2 emissions to achieve net zero carbon by 2050. CCS is expected to provide up to 30% of that total carbon emission reduction. Creating this supply chain will connect Florida to the fast-maturing CO2 industry, will help improve air quality, and provide new jobs involving innovative technology and infrastructure in Florida to support OSG’s proposed CCS and CO2 transport systems.
