Peninsula joins growing group of bio-bunker suppliers with 1st delivery in Gibraltar

Bunker fuel supplier Peninsula completed its first bio-bunker delivery from its new chemical tanker in the Gibraltar Strait last month, joining suppliers such as World Fuel Services and Cepsa in seeking to cater to growing biofuels demand in the Mediterranean .

The debut operation involved a ship-to-ship transfer to a 62,594 dwt Norden bulk carrier, La Luna, which loaded a fuel blend comprising 24% of Used Cooking Oil, or UCOME, and 66% of very low sulfur fuel oil on June 19.

While many shipowners have opted for B24 blends, which has a 24% biofuel blend, as a first step in decarbonizing their operations, Peninsula's new 9,000-cu m tanker, Hercules Sky, is ready to offer up to 100% biofuel product, the company said July 10.

As greenhouse gas emissions regulations have tightened, biofuels have become increasingly popular as an alternative marine fuel that requires minimal to no retrofitting of existing vessels.

Speaking at a webinar July 11, Eirik Nyhus, Director of Environment at DNV Maritime, estimated that 1 million mt of B30 biofuel blends were sold last year globally, calling biofuels the "obvious go-to solution," while the industry awaits availability of other low-carbon options.

The IMO is yet to publish on its own regulatory standards for biofuel blends, though markets have looked to alternative industry guidelines such as the Renewable Energy Directive and International Sustainability & Carbon Certification for guidance on quality standards. Peninsula confirmed that its biofuel supplies will be ISCC accredited, verifying that material was derived from sustainable feedstock with greenhouse gas emissions reduction.

"The Mediterranean is a key region for global shipping, and the Gibraltar Strait enjoys an excellent strategic vantage point to capture the inevitable, imminent increase in biofuel demand," Nacho de Miguel, Peninsula's Head of Sustainability said July 10.

The company will seek to keep pace with consumer demand in the region, aiming to supply bio-blends to key ports "where sufficient critical mass exists."