Item No. 7C Meeting Date: January 8, 2019 Charting a course towards a thriving, sustainable maritime industry Washington Maritime BLUE Strategy VISION: Washington State will be home to a world-class, thriving, and sustainable maritime industry by 2050. MISSION: The Washington Maritime Blue Strategy will accelerate growth in the Blue Economy and establish WA State as a global leader in maritime clean tech innovation and best management practices that support a growing maritime economy in all sectors with increasing living-wage jobs, a healthy environment and resilient communities. The state will accomplish this in partnership with all stakeholders; including business, academic and research institutions, ports, labor, and community organizations. 2 Governor's Maritime Innovation Council Co-Chairs Rep. Gael Tarleton, WA State Legislature - Frank Foti, Vigor Dennis McLerran, Fmr EPA Region 10 Members Sen. Ann Rivers, WA State Legislature Chairman Leonard Forsman, Suquamish Tribal Council Commissioner Fred Felleman, Port of Seattle Mayor Laurie Gere, City of Anacortes Secretary Roger Millar, WSDOT Director Brian Bonlender, Dept. of Commerce Director Sheida Sahandy, Puget Sound Partnership Director Craig Kenworthy, PS Clean Air Agency Director Eleni Papadakis, Workforce Training Board John Wolfe, Northwest Seaport Alliance Paul Stevens, Saltchuk Joe Ritzman, SSA Marine Stefanie Moreland, Trident Seafoods Vince O'Halloran, Maritime Trades / AFL-CIO Bob Miyamoto, UW Applied Physics Lab John Dwyer, USCG Sector Puget Sound Bruce Anderson, Starcrest Consulting Barbara "b.g." Nabors-Glass, Seattle Goodwill 4 Planning Efforts Intertwined • Port of Seattle kicked off efforts to investigate and plan for maritime innovation center in August 2017 - Department of Commerce helped fund Ship Supply Design Charrette and outreach sessions with Anacortes and Port Hadlock maritime communities - More narrowly focused on possible innovation center development as part of Fishermen's Terminal redevelopment • State of Washington kicked off Maritime Blue planning efforts in December 2017 - Port of Seattle helped provide match funds for Maritime Blue planning funds - More broadly focused on longer term strategies for the cluster 5 Washington Maritime BLUE Initiative Create a Strategy for accelerating the BLUE economy, technology innovation and sustainability in Washington's maritime industry. Formalize the Cluster as a focal point for coordination, incubation, capital investment & commercialization. Establish a Maritime Innovation Center for R&D and commercialization of innovation technology through public/private partnerships. 6 The Blue Economy and Sustainable Development Development of maritime business, technology and practices that promote a sustainable future contributing to economic growth, ecological health, and thriving communities - the Blue Economy. Growing Economy: building a strong business climate, investment, efficient regulation for innovation and infrastructure. Healthy Ecosystems: committed to restoring and sustaining the health of our coastal and marine ecosystems. Resilient Communities: consider a social justice lens to all our efforts to ensure thriving and resilient communities. 7 Maritime Blue Strategy Framework Strategic Goals What success will look like High Caliber Workforce Low Carbon Industry Global Innovation Hub How we will achieve the goals Initiatives Our Roadmap for Implementation Action Areas What tools we will use Values What will guide actions Competitive Cluster Blue Innovation Development Pathways Competitive Gateway Projects & Milestones Policy Recommendations In progress or to be accomplished the short (pre-2025) & medium (pre-2035) term Regulatory and policy priorities necessary to advance the Blue strategy R&D, Demonstration, Incubation Education & Training Competitive BLUE Economy Best Practices, Standards & Certifications Policy, Regulation & Finance Communications, Outreach & Collaboration Engaged & Resilient Communities Healthy Ecosystems 8 9 10 Implementation Blue Strategy Blue Cluster The Strategy was created by stakeholders to ensure that Washington State be home to world-class thriving, sustainable maritime industry through accelerating innovation for a Blue Economy. The Cluster is a Strategic Alliance for Maritime Innovation and Sustainability, created to implement the Strategy through coordination, incubation, business development, and joint industry projects 11 What Does a Cluster Organization do? General cluster development Innovation collaboration Knowledge collaboration • Networking activities • Set research priorities • R&D and education initiatives • Facilitate collaboration • Facilitate funding / financing • Build international relationships • Strengthen the knowledge base • Accelerate tech development • Direct Advisory services' • Improve practices and efficiency • Joint industry projects • Attract investors and talent ' • Communications and marketing • Drive commercialization • Connect to education and training • Advocacy and awareness 12 Next Steps January 8th, 2019 Rollout Strategy and Launch Cluster Alliance Short Term - Q1-Q2 Longer Term - Q3-Q4 Outreach-Maritime Communities Board Development Membership Drive Kick-off Blue Forum Topics Blue Fund - Landscape Analysis Kick-off Marketing Campaign Incoming Trade Mission Innovation Center Planning Ongoing Programs Business Services and Consultation Youth Maritime Collaborative Joint Industry Project Planning B2B Intros and Connections Kick-off Incubator/Accelerator Blue Fund Development Support Satellite Sites Kick-off Marketing Campaign Outgoing Trade Mission Continued...Innovation Center Planning Blue Forum (Topics TBD) Youth Maritime Collaborative Joint Industry Project Planning B2B Intros and Connections 13 Maritime Innovation Center Planning Study Scope of Effort 1. 2. 3. 4. Work with Maritime stakeholders to establish entrepreneurial focus points for center Work with architectural team to define space and equipment requirements - Provide Initial facility design specifications - Define equipment specs and space requirements The Port's Historic Ship Supply Building Develop plan and case for incubator including initial and longer term Proformas Provide incubator management options and recommendations 14 14 Maritime Innovation Initiatives TERMINAL 91 UPLANDS Port staff with Dr. Hans Maas at RDM Rotterdam Maritime Community Engagement Innovation Center outreach highlights: • • • • • Hosted a workshop with 25 maritime stakeholders to identify the major strengths, weaknesses and trends of Puget Sound's maritime sector Developed on online survey that solicited input from 150+ stakeholders Hosted outreach meetings with partners in Anacortes and Port Hadlock Interviewed 35 people (28 distinct organizations) Facilitated a design charrette focused on adaptive reuse of the Port's Ship Supply building The Port received significant input that helped focus the Port's innovation initiative and drive Maritime Blue 16 16 Stakeholder Input: Room and Opportunity for Improvement 1. The Maritime industry does not enjoy the visibility or reputation that other industries enjoy in Seattle (ex. Aerospace and IT) 2. Washington's Maritime industry is not particularly innovative 3. The top three trends/opportunities for the Washington maritime sector include: • Electrification • Ship and vessel design innovation • Marine renewables 17 Top Priority Incubation Services 1. Shared resources with research centers, testing facilities, universities and private companies 2. Guidance and mentorship from business leaders/investors 3. Business support service provider assistance (e.g. HR, legal, marketing) 4. Access to general equipment for testing or fabrication of prototypes 5. Classes/training for workforce and skills development RDM Rotterdam 18 Maritime Innovation Initiatives @ the World • AltaSea is working with the Port of Los Angeles to repurpose a 35-acre pier into a Science Hub and Business incubator • COVE in Halifax is an old Coast Guard facility that has been converted into a hub for scientific research, events, incubator space, ocean technology tenants, and workforce programming • RDM Rotterdam in Rotterdam is a defunct shipyard that has been converted into a technical training academy and incubator • Port XL "World's first Port Accelerator," spun out of the Port of Rotterdam, runs as an independent accelerator 19 Next Steps - Maritime Innovation Initiative 1. 2. 3. 4. 5. Develop MOU: Formalize implementation responsibilities with Washington State Update Business Plan: Develop more detailed business plan to drive future innovation center operations and funding sustainability Complete design work: Determine cost of redeveloping historic ship supply building • Evaluate other location options for center concurrently Form advisory group: Tab into expertise from education, government and private industry to guide future efforts Develop virtual incubator: Spur innovation and entrepreneurship within Maritime sector during time it takes to develop permanent facility (3 years) 20 APPENDIX 21 Project Schedule Phase 1: Project Launch Project kick-off Stakeholder identification Phase 1 (cont.) Task Force Meeting Stakeholder communications Public Kick-off Governor's launch of Vision process, Advisory Council December 2017 Phase 3: Pathway Evaluation Establish Pathway charters Policy framework development Prepare detailed roadmap January 2017 Work Groups Phase 2: Design Strategy Framework Cluster mapping, comparison & baseline Drafting of strategy Jan - Mar 2018 Advisory Council & Task Force Approve roadmap Work Groups Sep. - Nov. 2018 May - Aug. 2018 Monitoring and Evaluation of Implementation Jan. 2019 - May 2019 Project activities Advisory Council & Task Force Prioritize strategy areas and pathways Approve draft strategy Strategy Review Evaluate progress, continued alignment with vision May 2019 Stakeholder workshops and marketing events April 2018 Phase 4: Implement Roadmap Roll-out event January2018  Final Report: submitted on January 8, 2018  Revised Final Report, to be aligned with updated 2019 policies as adopted by the legislature: submitted on June 1, 2019 Strategic Goal: A Thriving, Low-Carbon Industry Establish a decarbonized maritime industry that continues to grow and maintain resiliency by taking advantage of an ecosystem of innovations for cleaner air and efficient, cost-saving operations. Pathway: Deep Decarbonization Accelerate the transition of Washington's maritime industry to a low-carbon future pursuing technological innovations, infrastructure, and incentives to enable the transition of local, coastal and international maritime activity. Initiative 1: Low-carbon maritime technologies board. Initiative 2: Low carbon shore side infrastructure. Initiative 3: Strategies for emissions reductions Demonstration Projects: Electrification of State & regional ferries. Establish case studies to demonstrate return on investment & reduction in emissions for transition to electrification, LNG, renewable fuels, & fuel cells. Strategic infrastructure planning to support investments in low-carbon energy and fuel infrastructure. Leverage real time emissions tracking tools to ID opportunities to improve performance. Leverage existing collaborations to establish regional agreements for common emissions targets on the West Coast and beyond. 2 3 Strategic Goal: Global Innovation Hub Establish Washington State as a global maritime technology innovation hub Pathway: Blue Innovation Drive the commercialization of emerging blue technologies in Washington State by through strategicc partnerships.. Initiative 1: Digital Transformation 1.1 Digitally assisted operations 1.2 Digitally assisted operations Establish maritime innovation validation zone for R&D, Testing & Evaluation of safety & operational performanc e of digitally assisted operations. Establish shared data platform and standardi zed model to enable pilot for blue-ware and blockchai n applicatio ns. Initiative 2: Vessel Design & Advanced Manufacturing Initiative 4: Modernized Fishing, Seafood & Ocean Industries Initiative 5: Collaborative R&D Commercialization Demonstration Projects: Joint Industry Project to implement low impact vessel design for NOAA Marine Sanctuary Program Create model for advanced manufacturin g techniques and materials in shipbuilding while increasing jobs and training programs Increase in-state seafood processing with full utilization technology. PNNL's Macroalgal NOMAD project, demonstration phase. Development of new gear and marketing strategies for harvest of hatchery salmon in the lower Columbia for harvest of hatchery fish and release of wild fish Design & build a Maritime Innovation Center to house cluster programing, coworking space and support commercialization of technology. 2 4 Strategic Goal: Competitive Gateway Washington will be a premier region for imports, exports and maritime industrial activity with a reputation for safety, transparency, efficiency and sustainability. Pathway: Working Waterfronts Washington will lead the nation in efficient, clean and safe maritime practices across all maritime communities and sectors of the industry. Initiative 1: Smart Ports 1.1 Digitalized processes Support development of common platform, standards for data sharing across terminals & provide incentives to encourage participation. 1.2 Clean & efficient operations Modernization & electrification of NWSA terminals. 1.3 Managing the future of maritime workforce Host future of maritime workforce summit to address technology innovation alongside job growth. Initiative 2: Infrastructure and Regulatory Strategy 2.1 Long-term maritime infrastructure & transportation strategy Create holistic long-term infrastructure and transportation strategy to plan for future needs and technology developments for freight mobility Initiative 3: Blue Gateway 2.2 Regulatory predictability & land use 3.1 Attracting business activity through sustainability 3.2 Maritime Sector Stewardship & CSR 3.3 Increase eco-tourism & recreational boating Work with regulatory agencies to create pilot permitting process for innovation that meets sustainable economic development criteria. Develop an optimization tool for maritime applications to gauge sustainability indicators like ROI, jobs & emissions impacts (for vessels, infrastructure, operations). Maritime NGO CBO partnerships for conservation supporting Corporate Social Responsibly and social licence Build up shore power/ wastewater infrastructure to reduce emissions and impact. Regulatory bodies to leverage agreed upon certifications, best practices and standards to create incentivebased regulatory scheme. 2 5 Strategic Goal: High-Caliber Workforce A technologically adaptable and inclusive workforce with a sustained stream of highcaliber entrants will be developed Pathway: Workforce Development Next generation of an inclusive and diverse maritime workforce with technological expertise and access to clean, healthy, living wage jobs. Initiative 1: Career pipeline, pathways & connections 1.1 Skill demand forecasting & strategy for workforce pipeline 1.2 Mapping career pathways in & through the industry 1.3 Career-connected learning Initiative 2: Inclusivity, support & outreach 2.1 Create broader opportunities for equitable & inclusive participation 2.2 Outreach and engagement Develop an equity framework for maritime employers & training providers with Community Based Organizations. Host a Maritime Blue Forum between workforce organizations, industry & ambassadors for underrepresented communities. Demonstration Projects: Skill demand forecasting and creation of a forward-looking strategy framework that consolidates efforts to date. Launch marketing campaign for maritime careers leveraging integrated website with mapped pathways & forecasts. Leverage existing registered apprenticeship programs to increase training across the maritime supply chain Youth Maritime Collaborative housed within Maritime Blue Cluster & sustained with funding to expand opportunities. 2 6 Strategic Goal: Competitive Cluster An organized cluster of competitive companies and partners will continuously drive sustainable economic development for the maritime industry Pathway: Cluster Coordination Drive implementation of the WA Maritime Blue strategy & collaboration to ensure a strong maritime cluster founded on competitive maritime companies & an attractive business environment. Blue Focus Blue Forum Blue Forward Development of Communications Plan, in conjunction with partner organizations, to raise visibility & connect with opportunities. Networking and strengthening of the knowledge base: Host workshops, provide market data, Cooperation with authorities to create a better framework to develop new technology. Establish website to serve as a focal point for information about & for WA's Blue Economy. Blue Force Blue Finance Platform for collaborative R&D projects, Joint Industry Projects (JIP,) teaming for grant opportunities. Cooperation to enable the workforce of the future through coordination, funding & public forums. Conduit for public and private funding opportunities. Attract investors and connect the dots on the value proposition for innovators. Incubation to drive early stage innovation to commercialization. Guidance and mentoring for start-ups & businesses looking to expand into the BLUE economy. Scholarships for workforce development. Job board. Fostering internship & apprenticeships. Mentor-mentee relationships. Hands on learning for K-12. Establish Maritime Innovation Fund for capital investment in innovation-based startups with a potential for high growth and job creation 2 Strategic Goal: Competitive Cluster An organized cluster of competitive companies and partners will continuously drive sustainable economic development for the maritime industry Pathway: Cluster Coordination Drive implementation of the WA Maritime Blue strategy & collaboration to ensure a strong maritime cluster founded on competitive maritime companies & an attractive business environment. Blue Facility Blue Federation The Maritime Innovation Center will house incubation, acceleration, co-working and public meeting space. It will act as a hub to the many spokes in rural maritime communities across the state. Partner with Washington Maritime Federation to ensure continued support and coordination of industry priorities. 2 8 Global Network of Blue Maritime and Ocean Clusters Formal and organized Ocean/Maritime Clusters have emerged as organizational entities that enhance competitiveness and collaboration among industry participants, institutions, and other stakeholders. 29 Hub and Spoke Innovation Center Model Center Will Be Built on Partnership 30 Maritime Innovation Initiatives - RDM Rotterdam • Converted from a defunct shipyard into a new interdisciplinary space that supports events, technical training academy, an incubator, storage space with a wave tank, and other testing facilities • Co-located with a senior secondary vocational school and a higher professional educational program • Supported with funding from the European Commission, the Port of Rotterdam, and other sponsors • Focused on maritime technologies and other ocean related verticals including innovative housing concepts over water and design 31 Maritime Innovation Initiatives - COVE • Converted an old Coast Guard facility into a hub for scientific research, events, incubator space, ocean technology tenants, and workforce programming • Significant government funding and support • Focused on ocean technologies • Governed by a nonprofit organization that is similar to a cluster, and its incubator is contracted out to another company that specializes in running incubators. 32 Maritime Innovation Initiatives - Port XL • "World's first Port Accelerator," spun out of the Port of Rotterdam, runs as an independent accelerator • General co-working office space with fast-paced programming for startups that are selected through a competitive process in cohorts • Two Seattle based companies have participated in the accelerator • Value proposition is the connection to the port and a growing number of end-users at one of the largest ports in the world • XL wants to open US office 33