60,000m³ biofuel facility planned for Strait of Gibraltar port

Peninsula, an independent marine fuel supplier, has signed a memorandum of understanding with Evos, a European liquid energy and chemicals storage company, to develop a 60,000m³ biofuel storage facility at Evos’ Algeciras terminal in southern Spain, on the Bay of Algeciras in the Strait of Gibraltar.

It is strategically located on the main shipping route between the Atlantic Ocean and Mediterranean Sea.

“It is designed to support the growing adoption of biofuels across the maritime sector by ensuring access to a reliable and scalable supply of lower-carbon fuels,” said Peninsula owner John A. Bassadone. “Maritime, demand for biofuels continues to grow. While the regulation currently applies to vessels above 5,000 gross tonnes, the European Commission is also expected to evaluate the potential extension of the framework to smaller vessels over 400 gross tonnes.

“Biofuels can support a broad range of vessel types, from large commercial vessels to smaller workboats and harbour craft, where compatible with the vessel’s fuel specifications and operational requirements. By investing in dedicated storage infrastructure, Peninsula aims to help customers meet their decarbonisation objectives and contribute to reducing the maritime sector’s overall carbon footprint.”

Peninsula plans to integrate the facility into its wider biofuels supply network. Bassadone said it was too early to identify specific biofuel suppliers or supply arrangements, and intends to source products from suppliers that meet relevant sustainability, quality and regulatory standards, with an emphasis on compliant, traceable fuel and a reliable supply chain.

Storage

“Unlike some alternative fuels, biofuels do not generally require pressurised storage systems,” said Bassadone. “However, storage requirements vary depending on the specific fuel type.

“While some biofuel products can be stored in relatively conventional tank infrastructure, others require additional considerations, such as specialised materials and coatings, heating systems, inert gas systems, vapour control measures and associated handling infrastructure. The exact requirements depend on the characteristics of the fuel being stored.

“The proposed infrastructure is intended to provide the flexibility needed to support a range of lower-carbon fuel solutions while maintaining the high standards of quality, safety and regulatory compliance expected in the marine fuels sector.”

Evos will lead project development at the Algeciras terminal, including engineering, permitting and construction, subject to a final investment decision.

Evos operates tank terminals for liquid energy and chemicals at eight locations in five countries, including Algeciras, and has a combined storage capacity of 6.3 million cubic metres. Founded in 2019, the company is owned by investment funds managed by Igneo Infrastructure Partners.

Algeciras is an established bunkering and trading hub at the Strait of Gibraltar, with direct relevance to international shipping and inter-Mediterranean trade flows. Evos said the project would build on its existing presence in the port and respond to changing demand in the bunker market.

The MOU is subject to further technical and commercial discussions between the two companies. A long-term storage and handling agreement will depend on Evos’ final investment decision. The project is intended to provide additional regional storage infrastructure as demand for marine biofuels develops further.