A major biofuel storage facility is set to be built at the Port of Algeciras as demand grows for cleaner shipping fuels.

Gibraltar-based Peninsula has signed a memorandum of understanding with terminal operator Evos to develop up to 60,000 cubic metres of dedicated biofuel storage capacity at one of Europe’s busiest ports.

The new infrastructure will be located at Evos’ existing terminal in Algeciras and will be used exclusively by Peninsula to strengthen its supply chain for low-emission marine fuels.

The facility will allow the company to store, manage and blend different biofuels according to customer demand, giving it greater control over the supply of sustainable bunker fuels.

Strategic location

The companies said the project’s location on the Strait of Gibraltar, considered one of the world’s busiest shipping corridors, makes it strategically important as the maritime industry works to reduce carbon emissions.

Demand for sustainable marine fuels is expected to increase significantly as shipping companies adapt to stricter European environmental rules, including the FuelEU Maritime regulation and the EU’s Emissions Trading System (EU ETS).

Peninsula founder and CEO John A. Bassadone said biofuels currently offer the most practical solution for helping the shipping industry cut emissions.

He said the new storage facility would improve product quality, provide greater flexibility for customers and allow the company to respond more quickly to changing market demand.

Meanwhile, Evos will be responsible for designing, permitting and constructing the new infrastructure.

Its CEO, Daan Vos, said the expansion would strengthen Algeciras’ position as one of the Mediterranean’s leading bunkering hubs while supporting the transition to lower-carbon shipping.

Read more Andalucia news at the Spanish Eye.