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Surf instead of turf

Rising to the surface is a series of technological innovations allowing large amounts of propane to be stored underwater.

Tethered just above the seabed some two miles offshore, the contents would be secure from terrorist attacks and shielded from natural disasters, as sprawling tank farms cease to occupy valuable – and vulnerable – beachfront land.

Population centers surrounding above-ground storage vessels would no longer fear explosive catastrophes, and construction costs could be lowered by about 40 percent because the tanks can be made of thinner steel; the inherent pressure of the ocean blue will apply the necessary strength amid a spark- and oxygen-free atmosphere.

“We’ve finalized the engineering, planning and design,” reports Ofir Sarid, founder and CEO of Israel’s SeaGen Systems Ltd. “If you compare our solution to traditional propane storage, our solution minimizes the risk.

“It’s an elemental approach,” Sarid points out. “There’s no reaction between the propane and the water, there’s no pollution and it’s not harmful to marine life.”

Known as the Gas-Marine Tank System, or GMT, the project made a huge splash during its November debut at the International Water Technologies and Environmental Control Exhibition (WATEC). “The problem of finding safe and economic storage solutions for gas in large quantities is becoming more and more acute,” explains WATEC Chairman Booky Oren.

“This underwater system will tick all the boxes,” Oren asserts. “It is expected to be significantly cheaper than the cost of storage in above-land containers, it will free up important real estate areas and it will increase the safety of residents and employees.”

Sarid is buoyed by the response he received at the event. “We have interest from industry people in the oil and gas market,” he says, noting that security-conscious attendees from Europe and the Middle East are particularly intrigued by his array of “smart containers” that would be moored at a depth of 150 to 200 feet.

Master’s degree candidates at the University of Michigan’s Stephen M. Ross School of Business have been busy conducting a market study to gauge whether the idea of a GMT will float among domestic propane suppliers.

“I think the answer is ‘yes,’ but it’s going to require a cost-benefit analysis; most of the storage in the U.S. is underground,” says Bob Barry, president of industry equipment provider Bergquist Inc. in Toledo, Ohio. A resident of Ann Arbor, he was interviewed by the Michigan graduate students eager to tap his expertise.

While the existing caverns have proven to be successful, Barry does foresee possible uses along the heavily populated East Coast, where wintertime bottlenecks can occur at crowded terminals.

Homeland security issues may present a role for underwater storage, although an American public skeptical about the environmental appropriateness of offshore facilities could present considerable political challenges.

“Part of the selling point is that it is much safer,” Barry observes, and “putting the tanks underwater rather than underground is cheaper.”

He goes on to note how “the whole concept of putting tanks underwater is really neat. It may not have applications in the U.S., but elsewhere in the world it would be cost-effective because it is cheaper and more secure.”

Sarid has already obtained approval from Israeli regulatory, military and environmental authorities to construct a 200-ton capacity propane pilot project off the country’s Mediterranean shore. Several tanks of an undisclosed size are to be used.

“The containers will be filled effortlessly, using pipes emptied directly into trucks located on the beach,” Oren notes. “In the rare event of any leakages, the gas released from the container floats on the water and evaporates far away from population centers and does not dissolve in water.”

Tanker ships can drop anchor atop the site, which would be marked by a nondescript buoy with limited evidence of unsightly apparatus protruding above the surf.

Citing obvious security precautions and proprietary business issues, Sarid is reluctant to discuss too many details. But he does report that an unnamed tank firm is lined up to produce the various components, which are designed in compliance with standards set forth by the American Society of Mechanical Engineers.

“It can cause problems on the seabed if you don’t use special techniques. The system is floating [above the ocean floor] so it won’t damage marine life,” he explains.

“The first pilot should be enough to show that it works,” according to Sarid. “We have a manufacturer ready – we’re just looking for money.”

SeaGen is actively seeking investors to provide an additional $2 million to initiate construction; $1.5 million would go toward the installation, while $500,000 would be earmarked for a global marketing campaign. Sarid declines to reveal the total cost of the endeavor.

“This is our challenge and opportunity,” says Sarid. “The sales cycle is really long” for a new technological innovation of such scope, he adds. He hopes to set sail with the pilot project later this year.

“Due to a rise in LPG consumption and obsolescence of many existing sites, there is a need for new LPG storage centers worldwide. And yet, in spite of the fact that great progress has been made in order to ensure safety of LPG storage sites, they are still a danger to the population, occupy large tracts of central expensive real estate and are vulnerable to security dangers, all of which require the installation of expensive safety and defense systems,” Sarid emphasizes.

“A land LPG storage site can be dangerous and may cause natural catastrophes, human casualties and great ecological damage besides being an easy target for terrorist attacks.”
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