Port of Seattle’s 10-year deal with Carnival includes biofuel demonstration project

The Port of Seattle Commission on Tuesday (25 June) said it approved a 10-year preferential berthing agreement with Carnival Corporation, which includes a biofuel demonstration project. 

The long-term agreement supports the Port’s path to work with partners to achieve its zero-emission sustainability goals, along with providing local economic development opportunities and boosting the economic impact of cruise in the region.

The agreement sets a 10-year term (2024 – 2033), with a mutually agreeable option to extend for five more years (2034 – 2038). 

The agreement builds on prior agreements between the Port of Seattle and Carnival Corporation, adding ambitious environmental, sustainability, and social dimensions that benefit the greater Seattle region and helping to accelerate work underway.

Key elements of the long-term agreement in support of economic investment and sustainability includes:

• Piloting the use of biofuel in cruise ship operation: The Port and Carnival Corporation will collaborate on a non-fossil fuel demonstration project and study to identify the end-to-end challenges and opportunities for using sustainable maritime fuels at scale in Seattle. The learnings will support other work in the sector to transition to alternative fuels.
• Bringing in an anticipated USD 186 million in revenue and a minimum 550,000 revenue passengers annually: This would be the total anticipated revenue over 10 years; it could grow to $273 million if extended to the full 15 years.
• Advancing the Port’s 2027 shore power goals: Carnival Corporation has been the leader on shore power in Seattle, having installed the equipment almost 20 years ago. To help the Port realize its ambition to have all ships at all cruise berths plug in by 2027, Carnival Corporation will seek commercial agreements with other cruise companies to plug in their ships to Carnival Corporation’s shore power assets at Terminal 91. The company’s vessels represented 100% of the shore power connections at the Port of Seattle in 2023, with 102 vessel calls.
• Developing a responsible sourcing pilot program: Carnival Corporation will accelerate its local sourcing efforts to partner with local suppliers. Working with the Port, it will develop a pilot program for Seattle that promotes and supports small, diverse, disadvantaged, local, and tribal suppliers. Notably, the pilot program will also focus on building the capability of key suppliers to help create benefits beyond cruising.
• Promoting overnight stays in Seattle surrounding cruise reservations: Carnival Corporation’s cruise lines will seek ways to further promote and encourage their guests to stay in Seattle before and after their cruise to help drive greater economic impact for the city and region.
• Supporting educational and workforce development with maritime not-for-profits: Carnival Corporation will build on existing relationships by working with educators to support curriculum development, experiential field-based learning opportunities, and internships where appropriate to help build the maritime workforce pipeline in the region.

Photo credit: Port of Seattle
Published: 1 July, 2024