US tanker owner Overseas Shipholding Group is banking government cash to develop a liquefied CO2 carrier.
The Jones Act specialist said the Department of Energy has awarded a grant of $3m towards engineering and design work for an articulated tug barge.
The idea is to transport CO2 captured across Florida to sequestration sites in the Gulf of Mexico.
“The new vessel grant provides further resources towards the development of a complete CO2 storage and transport solution for industrial emitters in Florida,” OSG said.
The owner is better known as an owner of suezmaxes and MR tankers but also has conventional and lightering ATBs.
The grant follows the company’s announcement in December of an award by the Department of Energy for the development of OSG’s proposed Tampa Regional Intermodal Carbon Hub (T-RICH).
The T-RICH grant will fund a study led by OSG to develop an intermediate storage facility at Port Tampa Bay for captured CO2.
The site would initially receive, store and process 2m tonnes of CO2 per year. This could be scaled up in future.
The new ATB would ship CO2 from this plant.
Natural next step
The Department of Energy has encouraged the development of carbon capture and storage (CCS) systems as part of the US’ goal to reduce CO2 emissions to achieve net-zero carbon by 2050, according to OSG chief executive Sam Norton.
“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,” Norton explained.
“Transporting liquefied CO2 is a natural next step into an exciting emerging market, consistent with OSG’s expertise with liquid cargoes,” he added.
Jeff Williams, OSG director of CO2 transport solutions, added: “OSG’s solution will help accelerate the adoption of carbon emissions reduction plans in Florida, result in improved health of affected communities, create hundreds of new jobs and bring innovative and transformative technologies to Florida.”
He added multiple ATBs could be built. OSG is headquartered in Tampa, Florida.
