Overseas Shipholding Group Awarded Federal Grant to Develop Captured Carbon Terminal at Port Tampa Bay

Overseas Shipholding Group, Inc. (the “Company” or “OSG”), a leading provider of energy transportation services, announced today that the Company has been awarded 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”). 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. “Transporting liquified CO₂ is a natural next step in an exciting emerging market, consistent with OSG’s expertise with liquid cargoes,” explained Norton. “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.”

“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 Mr. 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. “