60,000 cbm Biofuel Hub at Gibraltar to Slash Shipping Emissions

The maritime sector is under mounting regulatory pressure to cut greenhouse gas emissions, and biofuels offer an immediate drop-in solution. Peninsula and Evos's MOU to build 60,000 cbm of biofuel storage at Algeciras marks a crucial infrastructure investment that will help shippers comply with FuelEU and the EU ETS, accelerating the transition to a lower-carbon shipping industry.

The marine fuel industry took a significant step toward sustainability on August 5, 2026, when Peninsula, the leading hybrid marine fuels supplier, and Evos, a European liquid energy storage operator, announced the signing of a Memorandum of Understanding (MOU) to develop dedicated biofuel storage infrastructure at the Port of Algeciras. The planned expansion at Evos’ terminal could add up to 60,000 cubic metres of storage capacity, fully allocated to Peninsula, and is intended to fortify the biofuel supply chain in one of the world’s busiest maritime corridors—the Strait of Gibraltar. This collaboration signals a major private-sector response to tightening international emissions regulations, including the FuelEU Maritime regulation and the EU Emissions Trading System (EU ETS), which are pushing the shipping industry toward low-carbon alternatives.

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Peninsula and Evos's MOU to build 60,000 cbm of biofuel storage at Algeciras marks a crucial infrastructure investment that will help shippers comply with FuelEU and the EU ETS, accelerating the transition to a lower-carbon shipping industry.

The partnership brings together two companies with complementary strengths: Peninsula’s global reach as a physical supplier of both traditional and hybrid marine fuels and Evos’ expertise in storing and handling liquid energy products. By securing dedicated tankage at Algeciras, Peninsula gains direct control over the quality and blending of biofuels, which is crucial because biodiesels and other renewable feedstocks can vary in consistency and performance. This vertical integration reduces reliance on third-party terminals and offers Peninsula’s customers greater flexibility—the company can tailor fuel blends to meet specific ship operator requirements and adapt to market demand shifts, such as sudden price spikes in conventional fuels that make biofuels more cost-competitive. As John A. Bassadone, founder and CEO of Peninsula, noted, “Biofuels are the most versatile, available option today to meet decarbonisation targets,” and the volatility of fossil fuel prices further accelerates their adoption.

The location at Algeciras is strategic. The port sits at the crossroads of major east-west and north-south shipping routes, with thousands of vessels transiting the Strait of Gibraltar annually. Evos already operates a bunker terminal there, and the planned expansion builds on that infrastructure, positioning Algeciras as a key hub for low-carbon marine fuel bunkering. Daan Vos, CEO of Evos, emphasized the terminal’s “direct relevance to global shipping activity and inter-Mediterranean trade flows.” For a shipping company, being able to refuel with compliant biofuel at such a pivotal point could significantly simplify logistics and lower the carbon-intensity score under the FuelEU regime.

The regulatory backdrop is critical. FuelEU Maritime, which came into force in 2025, imposes gradually decreasing greenhouse gas intensity limits on ship energy use, starting modestly but ramping up in five-year increments. Concurrently, inclusion of maritime emissions in the EU ETS means carriers now face a carbon price for their smoke-stack emissions, effectively adding a tax on conventional bunker fuel. These policy instruments make biofuels—which can reduce well-to-wake CO₂ by up to 80% compared with heavy fuel oil—a compliance tool with both environmental and economic logic. Peninsula’s move to lock in storage capacity indicates an expectation that demand for such fuels will continue to grow, and that early movers with dedicated infrastructure will capture a disproportionate share of that market.

The MOU is not yet a binding contract; it sets the stage for technical and commercial discussions leading to a long-term storage and handling agreement, contingent on Evos’ final investment decision (FID). Evos will spearhead the project development, including engineering, permitting, and construction, while Peninsula will integrate the new capacity into its global biofuel supply network. The timeline to FID and eventual operation is not specified, but such projects typically take 18─36 months to complete, depending on environmental assessments and local permits. The Algeciras port authority’s support will be crucial, especially as the area is environmentally sensitive and subject to strict EU habitat directives.