Marine fuel provider Peninsula and liquid energy and chemicals storage company Evos have signed a memorandum of understanding (MoU) to jointly progress the development of dedicated biofuel storage infrastructure at Evos’ terminal in the Port of Algeciras, Spain.

Under the agreement, Evos plans to develop up to 60,000 cbm of storage capacity at its Algeciras terminal, which would be fully allocated to Peninsula to support the expansion of its biofuels supply chain in the region. The capacity would be integrated into Peninsula’s global biofuels supply network, while Evos would lead project development at the terminal, encompassing engineering, permitting, and construction.

The port sits at the Strait of Gibraltar, one of the world’s busiest maritime corridors, and the expansion project is intended to provide dedicated storage and handling capacity for low-carbon marine fuels. The parties will continue technical and commercial discussions on a long-term storage and handling agreement, subject to Evos’ final investment decision.

John A. Bassadone, founder and CEO of Peninsula, cited growing regulatory pressure as a driver of biofuel demand, pointing in particular to the FuelEU Maritime regulation and the EU Emissions Trading System (EU ETS). “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,” he stated. “These regulations are designed to ratchet up, and biofuels are the most versatile, available option today to meet decarbonisation targets.”

Bassadone added that the infrastructure partnership would give Peninsula greater control over product quality and the ability to blend biofuel ratios in response to market demand: “It will also offer our customers full flexibility and optionality when lifting biofuels from us, and further demonstrates Peninsula’s active commitment to the decarbonisation of marine fuels.”

Evos CEO Daan Vos said the expansion project builds on the company’s existing position in the port. “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 remarked.