Environmental

Environmental Commitment

Kirby is committed to continuously improving the compatibility of our operations with the environment

Management and the employees of Kirby pledge to:

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Conduct our business and operate our vessels in a manner that protects the environment and the health and safety of our employees and the public
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Recognize and be responsive to public concerns about waterborne transportation and its effects on the environment
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Make safety, health and the environment a priority in our business planning and risk management
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Commit to reduce overall emissions and waste generation, and comply with all laws and regulations concerning emissions and waste
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Participate with government and the public in creating responsible laws, regulations, and standards to safeguard the workplace, community, and environment
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Establish and maintain, in cooperation with public authorities and others, emergency preparedness procedures and plans to mitigate the effects of accidents which may occur

Marine Transportation: A Good News Story For Safety and the Environment

Marine Transportation: A Good News Story For Safety and the Environment

Marine Transportation – GHG Emissions

~99% of Kirby’s emissions are from the marine transportation fleet

Marine Transportation – GHG Emissions

Kirby Corporation – GHG Emissions Summary

Scope 1 Emissions Performance

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~99% of Kirby Corporation Scope 1 GHG emissions come from the operation of the marine transportation boat/barge fleet

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Ultra low sulfur diesel fuel consumption and CO2e emissions have declined 12% since 2015 despite significant growth in the number of vessels in
the fleet
– 2018: Higman, Targa, CGBM acquisitions added ~5.4 million barrels of capacity and 75 towboats
– 2019: Cenac acquisition added ~1.8 million barrels of capacity, 34 towboats, and 2 offshore tugboats
– 2020: Savage acquisition added ~ 2.5 million barrels of capacity, 45 towboats

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Emissions data reporting project launched in 2020 to better understand Kirby’s emissions footprint on a micro level

Scope 2 Emissions Performance

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100% of Scope 2 energy is consumed from the grid

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Signed a 36-month agreement for 100% green e-certified energy in April 2020 for all Kirby marine transportation facilities in Texas
– ECO Solutions Champion issued ~6,000 renewable energy certificates in 2021; 100% renewable representation
~25% of Scope 2 energy is renewable
*2021 Scope 2 excludes 6,000 MWh of electricity consumed from renewable sources

Decarbonizing Initiatives – 40% Reduction By 2040

When it comes to decarbonizing the company, Kirby is pursuing many paths in order to achieve best results.

Inland Marine – Hybrid Electric Towboat

Kirby will be the first inland marine transportation company to own and operate a diesel-electric hybrid towboat in the United States
  • Proprietary in-house design, development, and construction underway for a diesel-electric inland push boat incorporating an energy storage system (ESS) to significantly reduce emissions
  • Ready for service in 2023
  • Flexible battery design allows for adding or removing battery packs based on power needs
  • Reduced maintenance schedule and costs against conventional vessels
  • Efficiency gains in multiple operating modes
  • Fuel savings up to 30-80%:
SPECS:

  • Hybrid Drive with 2 Generators (1130 kW)
  • Battery Pack : 1243 kWh
  • Charge time at dock (480 VAC, 200A) : 6 hrs

Kirby Offshore Marine

Kirby Offshore Marine was a first mover to integrate tier four engines into their tugboat fleet
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Kirby Offshore Wind

Kirby Offshore Marine was a first mover to integrate tier four engines into their tugboat fleet

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Under the 20-year framework agreement:

‒ Kirby will provide barge transportation services for offshore wind towers and turbines to Maersk Supply Service

‒ First project is Empire Offshore Wind, a joint
venture between Equinor and bp off the
coast of New York

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Capital investment: $80-100 million for two feeder barge and diesel-electric hybrid tugboat units
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Each feeder barge will have the capacity to transport next-generation turbines of 15 megawatt and greater
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Operations are expected to commence in late 2025 or early 2026

Going Above and Beyond – Marine Transportation

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Limiting our Impact on the Environment

In 2021, Kirby transported 410.6 million barrels of cargo transported with only 60 gallons spilled to water
In 2021, Kirby transported 410.6 million barrels of cargo transported with only 60 gallons spilled to water

In the last 20+years Kirby’s investment strategy has…

In the last 10years Kirby’s investment strategy has…

As engine tier level increases, engines produce less emissions and become more efficient and environmentally friendly

Engine Tier Strategy

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Since entering the offshore market Kirby’s investment strategy has reduced Tier 0 engines by 95%

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Since 2015 Kirby’s investment strategy has spent
$200M+ on Tier 3 and 4 engines and boats

Ballast Water Management

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In the less than a decade, Kirby has installed ballast water treatment systems on 62% of its fleet

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By the end of 2024, Kirby will have all remaining
vessels outfitted with ballast water treatment systems

Kirby is committed to a cleaner and more efficient offshore fleet

Since 2017, Kirby Inland Marine has spent over $9 million dollars investing in solar panels for over 600 barges that power the high-level alarm systems

  • Allows the barges to load and discharge at facilities that do not have high level alarm hook ups on shore
  • Ensures tankerman can use the alarm system on loads and discharges which gives them a safety system to help prevent spills to the environment

Environmentally Friendly Oilfield Solutions

Kirby manufactures technologies that significantly reduce the environmental impact of hydraulic fracturing

Electric Fracturing Units

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E-frac units operate using natural gas turbines and electric motors, reducing their environmental footprint
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Units operate on field gas that may otherwise be flared
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Compared to conventional fracturing units, e-frac units:
– Reduce NOx emissions by up to 99%
– Reduce CO2e emissions by 32% and NO2 by 28%
– Reduce average sound pressure by up to 69%

Dual Fuel and Quiet Fracturing Units

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Duel-fuel (DGB) fracturing units have up to an 85% diesel displacement rate when using natural gas
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Units can operate on CNG, LNG, pipeline gas, and field gas that would otherwise be flared
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Reduces trucking and road traffic associated with diesel fuel transportation to the wellsite
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Noise reduction units reduce decibel levels by more than 3x (10+ dB noise reduction) compared to conventional frac units

Environmentally Friendly Power Generation Solutions

Kirby manufactures power generation equipment that is creating opportunities in new commercial and industrial markets

Natural Gas Reciprocating Generators

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High Power Output: 2.5 MW
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High Mobility: 53’ x 8.5’ x 13.5’
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Wide Operating Range: Up to 122oF operation
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Sound attenuated environmental enclosure
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Scalable operation with multiple generators
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Integrates with existing S&S power distribution products
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27.5% more fuel efficient than turbines assuming zero grid power supply at net zero consumption
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Reduces CO2e by 32% resulting in the cleanest power platform available for e-frac

Mobile Energy Storage Systems

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High Power Density: Up to 3 MWh storage capacity
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High Power Output: Up to 3 MW
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High Mobility: 53’ x 8.5’ x 13.5’
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Self Contained: Drive-up and plug-in (no additional rig-up)
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Output Voltage Flexibility: 13,800 volt shown
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Wide Operating Range: Up to 122oF operation
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Intelligent Operation: Advanced Battery Management System (BMS) and Power Management System (PMS)
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Highly Scalable: Platform Based Design (allows for smaller systems or use of multiple systems to meet different power demands)
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Integrated Turnkey Packages: ESS compliments existing S&S power generation and power distribution products

Going Above and Beyond – Distribution and Services

  • Largest manufacturer of frac units with Tier 4 engines, achieving higher EPA standards
  • Development of dry gel hydration units eliminates usage of mineral oil and/or diesel in slurries pumped into wells
  • Paint and solvent re-use and recycling reduces waste by-products by 95% and recovers 99% of solvents for re-use
  • LED lighting installed in key facilities to reduce energy consumption
  • Thermo King sells environmentally friendly products including:

ThermoLite® solar panels which deliver clean, reliable performance in a wide variety of applications, resulting in
longer battery life, decreased waste, lower fuel consumption and reduced emissions

Precedent® S-Series refrigeration units which achieve Evergreen CARB and EPA emissions compliance while
adding performance

TriPac® Auxillary Power Units (APUs) which meet Tier 4 EPA regulations and drive unit efficiency and productivity

Coldtainer – temperature controlled units which are made with technology and materials that are energy
efficient and eco-friendly that result in 40% reduction in CO2 emissions vs. Standard Refrigeration
*Awarded Top Green Provider in 2020 by Food Logistics*