The City of Seward was awarded a nearly $46 million grant from the Environmental Protection Agency for improvements to its cruise port, the city announced Tuesday, Oct. 29.

The grant, totaling $45.7 million, is part of the EPA’s Clean Ports Program, the release says, and is part of a larger proposed revamp of the city’s cruise ship port. That project is being undertaken by the city in partnership with The Seward Company — a development entity created to “revive, reimagine and rebuild” the cruise port in Seward — as well as Royal Caribbean Group and the Alaska Railroad.

A second release from the EPA says that funds for the grant come from the Inflation Reduction Act and are intended to reduce diesel air pollution from ports while promoting job growth.

The funds will be used, per Seward’s release, to “transform” Seward’s port into a “green port.” The project will extend the electric transmission line to the port and integrate a battery energy storage system with the intent to allow cruise ships to connect to Seward’s electricity services rather than relying on diesel generators for power.

Jason Davis, president of Turnagain Marine Construction, — an Anchorage-based developer of marine infrastructure — says in the Seward release that the new system will store power to save energy and money for Seward.

“The EPA Clean Ports Grant is a game-changer for us,” says Seward City Manager Kat Sorensen in the release. “It allows the city to implement shore power technology that will drastically reduce emissions from cruise ships in our coastal Alaska community.”

Grant funding will cover 90% of a project cost of $50.8 million, with remaining costs covered by funding support and design work from The Seward Company.

“This announcement is big for Seward, and for Alaska,” says Sen. Lisa Murkowski in the EPA release. “The EPA’s grant will reduce emissions, noise, and fuel consumption for vessels in the Port of Seward while bolstering grid stability, lowering energy costs, and promoting community workforce development. I’m proud to have worked with local officials and stakeholders to facilitate these transformative resources for a great project that will deliver benefits for years to come.”

The new shore power system is set to be complete after construction is finished on the New Cruise Port of Seward, which is scheduled to open in May 2026, per the release.

Information on The Seward Company’s website says that the larger project will include a complete replacement of the Port of Seward with a new double-berth pier and a 41,500-square-foot cruise terminal. In August, the Alaska Railroad’s Board of Directors approved the purchase of the facility to the tune of $137 million and Royal Caribbean has signed a 30-year pier usage agreement — guaranteeing, the website says, the revenue of 140,000 passengers when the facility opens.

For more information about the New Port of Seward, visit sewardcompany.com.

Reach reporter Jake Dye at jacob.dye@peninsulaclarion.com.