Peninsula and Evos have signed a Memorandum of Understanding (MoU) to develop dedicated biofuel storage infrastructure at the Port of Algeciras.
The companies plan to develop the infrastructure at Evos’ terminal. The proposed expansion could provide up to 60,000 cubic metres of storage capacity.
Peninsula would use the entire capacity to support the growth of its regional biofuel supply chain.
The Evos terminal sits near the Strait of Gibraltar, one of the world’s busiest maritime corridors.
The expansion would provide dedicated storage and handling capacity for low-carbon marine fuels. It would also give Peninsula greater control over its supply chain and fuel quality.
“We are seeing an acceleration of biofuel adoption as a result of price volatility of conventional fuels and regulatory measures such as FuelEU and EU ETS,” said John A. Bassadone, Founder and CEO, Peninsula.
“These regulations are designed to ratchet up, and biofuels are the most versatile, available option today to meet decarbonisation targets. By partnering with Evos to build storage infrastructure, it allows us to control the quality of product and to blend biofuel ratios according to market demand,” added Bassadone.
“It will also offer our customers full flexibility and optionality when lifting bio products from us and further demonstrates Peninsula’s active commitment to the decarbonisation of marine fuels,” he continued.
Under the MoU, Peninsula and Evos will continue technical and commercial discussions on a long-term storage and handling agreement.
However, the project remains subject to Evos’ final investment decision.
Evos will lead the development process at its Algeciras terminal. Its responsibilities will include engineering, permitting and construction.
Meanwhile, Peninsula will integrate the capacity into its growing global biofuel supply network.
“Algeciras is already an important bunker and trading hub, with direct relevance to global shipping activity and inter-Mediterranean trade flows,” said Daan Vos, CEO, Evos.
“Evos has a well-established position in the port as a bunker fuel storage terminal, and the expansion project with a strategic partner such as Peninsula builds on that position,” added Vos.
“By developing infrastructure for marine biofuels, we can respond to changing demand in the bunker market and strengthen Algeciras’ role in the transition to lower-carbon shipping,” he concluded.
The agreement reflects the companies’ plans to invest in scalable marine energy infrastructure at key global hubs.
