Peninsula and Evos have signed a Memorandum of Understanding (MOU) to jointly advance the development of dedicated biofuel storage infrastructure at Evos’ terminal in the Port of Algeciras.

The proposed expansion at the Evos terminal includes plans for up to 60,000 cubic metres of storage capacity, which would be fully allocated to Peninsula. The project is intended to support the expansion of Peninsula’s biofuels supply chain in the region.

Situated at the Strait of Gibraltar, one of the world’s busiest maritime corridors, the Algeciras expansion is aimed at strengthening infrastructure tied to the energy transition in shipping. It is expected to provide dedicated storage and handling capacity for low-carbon marine fuels, supporting Peninsula’s quality proposition through greater control of its supply chain at a port that already serves as a significant bunkering and trading hub.

John A. Bassadone, founder and CEO of Peninsula, said: “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. 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. 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.”

Under the MOU, the two companies will continue technical and commercial discussions on a long-term storage and handling agreement, subject to Evos’ final investment decision.

Evos will lead project development at its Algeciras terminal, including engineering, permitting and construction. Peninsula will integrate the capacity into its expanding global biofuels supply network.

Daan Vos, CEO at Evos, said: “Algeciras is already an important bunker and trading hub, with direct relevance to global shipping activity and inter-Mediterranean trade flows. 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. 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.”

The agreement reflects a shared ambition to support the evolution of the marine energy sector by investing in scalable infrastructure in key global hubs.

Source: Peninsula tweet