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. “

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. Carbon capture and storage systems are 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 for all Florida residents, and would provide hundreds of new jobs involving innovative technology and infrastructure in Florida to support carbon capture, storage, and transport systems that OSG is promoting.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts should be considered forward-looking statements. Words such as “will”, “plans”, “should”, “expect”, “would” and similar expressions are intended to identify forward-looking statements but should not be considered as the only means by which these statements may be made. Such forward-looking statements represent the Company’s reasonable expectations with respect to future events or circumstances and are subject to various risks, uncertainties, and assumptions. Undue reliance should not be placed on any forward-looking statements and consideration should be given to factors including, but not limited to, those risks discussed in the Company’s filings with the Securities Exchange Commission. The Company assumes no obligation to update any forward-looking statements except as may be required by law. Forward-looking statements in this press release and written and oral forward-looking statements attributable to the Company or its representatives after the date of this press release are qualified in their entirety by the cautionary statement contained in this paragraph and in other reports hereafter filed by the Company with the SEC.

About Overseas Shipholding Group, Inc

Overseas Shipholding Group, Inc. (NYSE: OSG) is a publicly traded company providing liquid bulk transportation services in the U.S. Flag markets. OSG’s U.S. Flag fleet consists of Suezmax crude oil tankers doing business in Alaska, conventional and lightering ATBs, shuttle and conventional MR tankers, and non-Jones Act MR tankers that participate in the U.S. Tanker Security Program.

Headquartered in Tampa, Florida, OSG is committed to setting high standards of excellence for its quality, safety, and environmental programs and is recognized as one of the world’s most customer-focused marine transportation companies. More information is available at www.osg.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20231221706201/en/