7c Maritime Blue trip notes

Item No. 7C attachment 2 
Meeting Date: January 8, 2019 
October 8, 2018 
TO: Steve Metruck and Port of Seattle Commissioners 
FROM: David McFadden, Stephanie Jones Stebbins, Kenny Lyles and Eric Ffitch 
Norway/Netherlands Maritime Innovation Trip Report 
Last month six Port executives joined maritime industry leaders and Washington Department of
Commerce staff to visit Norway on a fact finding trip to learn more about maritime innovation
initiatives. Norway is the world's Silicon Valley for ocean industries.
Trip Participants 
Steve Metruck, Port of Seattle          Fred Felleman, Port of Seattle          David McFadden, Port of Seattle 
Stephanie Jones Stebbins, Port of      Kenny Lyles, Port of Seattle            Eric Ffitch, Port of Seattle 
Seattle 
Joshua Berger, Maritime Sector        Brian Bonlender, WA Dept. of         Chris Green, WA Dept. of Commerce 
Lead  WA Dept. of Commerce        Commerce 
Justin Van Emmerik, Vigor             Josh Pruzek, Vigor                     Will Ayers, Elliot Bay Design Group 
Erik Larsen, Rolls Royce                 Jennifer States, DNV-GL                Dan Smith, Crowley 
Cosmo King, IO Currents 
Initially the group was hosted by Innovate Norway, a government agency dedicated to advance
opportunities in blue economy, clean energy, ocean space, smart cities, art and culture. After several
days in Norway, the Port team traveled onto Rotterdam to visit the Port there and its maritime
innovation center. 
The trip was invaluable and provided several takeaways that can support Washington's maritime
industries as well as Port operations: 
Norway's leadership in maritime clean technologies (ex. Batteries) offer clear examples of
systems that can power Washington's next generation of ferries and harbor vessels. 
Batteries could also work to support Port operations. The maritime division is exploring how
barges or other vessels could provide charging support or shore based power to Port customers. 
Innovation centers in Wilhelmsen and RDM Rotterdam provide useful models for a Port
maritime innovation center. Wilhelmsen is starting internal ventures and investing in new
relevant start-ups as it works to digitize the traditional maritime industry. The company is 
willing to provide technical expertise to the Port's initiative. RDM is operated by the technical
university and demonstrates how workforce development can play a central role within
innovation centers. 
Port XL is a maritime accelerator supported by the Port of Rotterdam and private industry. It is
expanding its efforts, looking to open a US office, and may be a good partner to work with on
maritime incubation/acceleration initiatives.
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Port staff visited a renewable fuels facility within the Port of Rotterdam and also visited Port
leaders to discuss sustainability efforts. The Port of Rotterdam invited the Port of Seattle to join
the World Ports Climate Action Program.
There is significant funding coming from public and private sector players, both in Norway and in
the Netherlands. In Norway, the level of investment is aided by the long-flourishing fossil fuel
sector, which is now turning its efforts toward developing clean energy resources. In both
countries, the Paris Accord was discussed as a settled matter giving industries no choice but to
turn their attention away from fossil energy sources. Public governments are assisting this
transition by matching private sector investmentswith public funds, as both government and
industry accept the reality of transitioning away from fossil fuels over the long term. 
Norway Highlights 
Norway is the fifth largest shipping nation in the world and a
Norwegian Maritime Industry 
global maritime leader. The country is especially out front when
it comes to sustainable maritime technology. Of the first 50 LNG      89,000 Employees 
propelled vessels ever built, 95 % were Norwegian. AMPER, the       $52 Billion Revenues/Year 
world's first electrical car and passenger ferry powered by             23% of Norwegian exports 
batteries entered into service in early 2015 in Sognefjorden,           5th largest fleet in value 
Norway. The ferry carries 120 cars and 360 passengers, but only
uses 150 kWh per route, which corresponds to three days use of electricity in a standard Norwegian
household. Both are examples of the ability and willingness in the Norwegian maritime industry and the
government to innovate for a better future. 
Driving Norwegian Innovation 
Innovate Norway is a 51% State and 49% County owned government agency with 34 offices around the
world. Innovate Norway uses a combination of funding and technical expertise to drive innovation in
key clusters (blue economy, clean energy, ocean space, smart cities, art & culture). The agency's
environmental grants and innovation contracts facilitate technological and entrepreneurial advances.



Maritime Cleantech Cluster 
Innovate Norway provides funding and technical advice to clusters across the country 
Maritime cleantech cluster formed in 2011  probably the most advanced cluster in Norway 
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o   74 employees including innovation project managers, a project coordinator, EV advisor,
communications and CEO 
o   90 partners across many sectors, companies large and small, public and education 
Participating companies pay for benefits of cluster services/resources 
Competing companies cooperate on innovation, new products, R&D, big projects (hydrogen
ferry) 
Katapult - government funded research center, projects focused on ocean innovation center,
digital and sustainable energy, etc. Katapults help drive innovation faster and often spur new
ventures. Kind of an Air BNB model where partners make their equipment available in return
for government capital 
Idea  concepts  prototype  scale very helpful for small innovative companies needing
equipment or access to technology to test/validate new products 
Ferry Innovation 
Norway's ferries cover 130 routes and carry 21
MM vehicles per year. The ferries are private
and operate under government contracts. The
State's procurement policies drive safety,
zero/low emission, and long term development
of clean technologies (LNG (21 ferries) Battery
(70-80 ferries) Hydrogen (coming)). 
The group visited with Wescon Green Solutions,
Servogear, Wartsilla, Kongsburg, Corvus, and
several other companies who are part of the
maritime clean tech cluster. These companies have all been collaborating to develop clean technologies
for ferries and other maritime applications. Many of these companies export their products and
services  maritime is one of Norway's top traded sectors. Visits with these firms and tours of Norway's
electric ferries provided inspiration to Washington State's ferry designers on the trip.
Autonomous Vessels 
Kongsberg Maritime is developing the first 100% fully
autonomous container ship. The goal of Autonomy is to
improve safety and energy conservation. Skill shortages
in the maritime industry are also driving autonomy.
Expect usage of unmanned vessels to increase to 50%
by 2050. There will still be a need for people at sea! 

Wilhelmsen Innovation Center 
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Created center to advance digital innovation efforts, company working to increase pace of
digitization across maritime industry 
Company just starting this digital venture 
o   Starting internal ventures and investing in new relevant start ups 
o   Ex  Doolittle founded by former Microsoft employee, Arif Sharique helping bring
software/coding to maritime. In house development becoming more popular but
companies face challenge of hiring coders/IT help. 
Wilhelmsen applying digital to traditional lines of business 
o   use a lean startup model, evaluate and scale promising ideas quickly 
o   ex. Introducing product tracking like Amazon 
o   ex. Automated boiler water maintenance helps reduce risk of boiler failure 
o   ex. Digital mooring ropes with sensors inside the rope 
o   ex. Software identifies and tracks needed ship repairs 
Other Highlights from Norway 
Norway advancing Green global shipping initiative (Narve Mjos) 
Port is Norway are also developing Port Index which establishes priorities for vessels based on
their commitment to sustainable practices (ex. Cruise) 
Uses Green Loans to fund companies for investments in pollution prevention, green
technologies, etc. A type of incentive financing program. 
Maritime energy transition outlook to 2050 
o   Mapping emissions for the Norwegian fleet 
o   10% of ship emit 50% (they are the biggest ships) 
o   Seaborne transport projected to grow 37% by 2050 
o   Electrification of maritime transport and energy infrastructure a big priority 







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Renewable Fuel Facilities and Markets 
On Thursday September 20th the Port team flew from Bergen to Amsterdam to learn more about
sustainable aviation and maritime biofuels. We met with Paul Paoletta and Lana Marter with Neste.
The company provides a variety of sustainably based fuels and products to the aviation industry  with
refining plants in Rotterdam, Finland and Singapore. We discussed the potential application to the
Maritime Industry, as this is one of few technologies that will feasibly decarbonize ocean going vessels.
During our conversations we learned that: 
Sustainable fuels are 4x as expensive vs traditional fuels at this point in time, parity will take a
long time 
CA uses RINS, tax credits, LCFS, etc. to drive price parity 
Neste started renewable fuel sales efforts with private sector and company now working to get
local/state governments on board 
o   Economics favor diesel 
o   Airlines want cost parity with current fuels 
o   Special financing tools needed to scale use of sustainable fuels (ex. private co. off take
agreements) 
Feds (specifically military) can help demand although there's no momentum (or lost
momentum) during the current administration 
Aviation has no alternatives (electric) so they should get priority for available biofuels. This
would also be the case for Ocean Going Vessels. 
Currently certain feedstocks are deemed sustainable others are not. Neste indicates that we
need to change this recognizing that regions have unique feedstock opportunities 
o   Feedstocks  garbage, crops, dairy waste 
About Neste. 
Neste is a publicly traded company on the Finnish stock exchange (fact check) The company has 5,000
employees and generates $16.2 B revenues/year. Within the renewable fuels industry the c ompany has
advantage of size/scale being a publicly traded company with a strong balance sheet. Most of their
current competitors are much smaller. Neste keeping eye on emerging partnerships with larger oil
companies (Shell & SKYNRG). The company 
Is an industry leader in processing dirty oils/ greases 
Produces low sulfur bunker fuel 
Produces 880M/year of renewable diesel 
Jet fuel is 50% of company sales 
Neste MY, branded renewable diesel being sold in CA 
Renewable diesel is not biodiesel - it is a colorless, odorless, high performance fuel 
Neste has 3 low sulfur fuels made in Finland 
o   Their renewable diesel all goes to the Scandinavian countries 
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Neste Rotterdam Plant Visit 









Safety First! 
170 employees - 1M tons of diesel per year (2,000,000 barrels) 
620 mm Euros plant investments  plant started in 2012
Port of Rotterdam recruited Neste (or encouraged them, as part of search for renewable
companies) 
They use 15 different feedstocks and several different products to satisfy various local
regulations (ex. no palm oil) 
Big customers are diesel manufacturers who need biodiesel to meet renewable regulations 
Plant in Singapore serves US - they met a time sensitive requirement that allows Singapore to be
RIN eligible 
Features/Benefits 
No sulfur, O2 or anomalies, a high quality fuel 
o   Smaller environmental footprint 
o   Lower operating costs 
o   Superior cold weather performance 
o   Long shelf life 
o   Easy switch, works in vehicles without need for conversion of equipment 

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Port of Rotterdam & Maritime Innovation 
On Friday the Port team visited Port of Rotterdam headquarters to rekindle a long term relationship 
between sister ports. Our group met with Alan Dirks, one of the Po rt's environmental managers. He
provided a good overview of Port operations: 
Port operations span 60km  Shell is huge customer spanning 24km along the river 
An "oil" port- they have 40 employees working to diversify beyond oil 
Cargo logistics 45% rail 30% truck 
The Port supports over 150,000 employees yet its industries have a poor reputation as work
places. It is seen as a dirty "old" place to work 
The Port invests in Port XL, a maritime business accelerator that holds a competition once a year
for top maritime ventures. 
We discussed the recently announced World Ports Climate Action Program, a groundbreaking
agreement spearheaded by the Port of Rotterdam and announced earlier in September. 
RDM Rotterdam 
After visiting the Port of Rotterdam, the team took a thrilling water taxi ride to RDM Rotterdam.
Originally RDM was a shipyard started in 1902. The company built vessels for Holland America
(including SS Rotterdam). The facility went down slowly in early 2000, and the port bought it in 2002
because the place was becoming blighted. The Port reached out to the local technical university to
operate center and then took seven years to redevelop the facility.








RDM Rotterdam campus 
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Dr Hans Maas, Dean of RDM Rotterdam hosted our visit and shared other highlights. RDM is part of
Rotterdam University of Applied Science Education  38,000 students spaced all over the city: 
RDM pulls university talent from across the city around specific projects (they have no
permanent faculty at RDM) 
University requires student thesis so be in conjunction with a private company 
Practical experience embedded throughout 4 year program 
Shared facilities  fab lab and Field/test labs 
Almost all universities are public and every university costs the same ($200 Euros/year) 
Port wanted to get next generation interested in the Harbor (why RDM) 
Get them ready for "Port of the Future" 
Port owns facility and doesn't charge for common spaces 
o   Goal  gets kids into maritime jobs with the skills needed for success (ex. train in IT for
maritime employers) 
RDM/Port hosts events for kids of all ages starting with kids (8-18) in elementary 
Learning space at RDMtenants must want to work with students 
At first entrepreneur's didn't come (in part due to recession), but situation has improved 
RDM expanding across the river (Port XL location) 
Creating a "Makers" district out of rougher older parts of port 
Smart Port: The Value added for Port of Rotterdam  innovation and trained people 
Port XL 
After visiting RDM the Port team visited Port XL, a
"The challenging times in all port
maritime business accelerator supported by private
related markets, like logistics, oil and
industry and the Port of Rotterdam. Port XL is global       gas, and maritime, require that we
they have 11 employees with two in Antwerp, five in       have a window on new technologies.
Singapore, and 4 in Rotterdam. The Port XL office          PortXL helped us identify these trends,
provides bullpen spaces for their startups.                   bringing new business models to our
markets and challenging conventional
Port XL scans the world each year scouting for promising    businesses." 
maritime startups. In the months leading up to their
annual acceleration initiative staff will do research on       Paul Smits 
CFO, Port of Rotterdam 
hundreds of emerging firms targeting those with most
potential in the maritime industry. Port XL uses private sector sponsors to screen the most promising 
firms down to 20-25 startups who participate in their "Selection Day" evaluation process where 10-15
companies are selected for the accelerator program. 
Selected startups then go through an intensive 3-month program to build and launch their business. At
a final event called Shakedown, startups showcase their innovations and progress. Highlights include: 
Startups must provide 8% stock or $150,000 Euro (but XL hasn't gotten any hard funds yet) 
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14 Corporate sponsors put in $50,000 with gold sponsors paying more  they effectively pay for
everything 
o   Port of Rotterdam sponsors Port XL to identify firms and technologies they need 
XL staff makes cut from 1000 suspects to 200 promising ventures before they bring the sponsors
in to evaluate these enterprises and further reduce the field to 20-25 candidate firms 
Participating startups get contract with one of our sponsors (provides early cashflow) 
Port XL has facilitated 84 contracts on behalf of 36 accelerator clients.
Satellite office offer shorter one week programs designed to feel participants into Port XL's
annual accelerator. 
Rotterdam is ultimately gaining brand recognition for innovation 
Next Steps 
The Port of Seattle delegation benefited tremendously from the lessons learned on this trip. The team
will be advancing maritime innovation across the Port in a number of ways: 
Staff is exploring whether battery powered vessels could provide charging support or shore
based power to Port customers. 
Innovation centers in Wilhelmsen and RDM Rotterdam provide useful models for a Port
maritime innovation center. Staff needs to determine how these models apply to our own
initiative but it is invaluable to see what other companies and Port districts are doing to advance
maritime innovation. Being able to collaborate with existing partners in this arena can help
ensure Port of Seattle initiatives are practical and effective.
Port XL offers a partnership opportunity as they are looking to expand their United States
presence. Staff will be following up with Port XL to explore partnership opportunities. We have
discovered two Seattle based maritime companies who have participated in Port XL so this is a
worthwhile partnership to explore even if we only emulate certain aspects of their program. 
The Port of Rotterdam shared information the World Ports Climate Action Program. Our Energy
Goals are our programs are aligned with this program and we see potential benefits with
aligning our actions with these other Ports. The initiative is recently announced and it is not
clear yet how additional Ports can join. We are investigating. 
Other visits to Alta Sea in Los Angeles and the Coast Guard's Science and Technology Innovation
Center in New London, Connecticut are also anticipated. These fact finding trips will enable Port
leaders to forge productive relationships with other maritime innovators and to learn about best
practices (and additional lessons learned) that can drive the Port's maritime innovation center. 



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