Moeve has signed a strategic agreement with Grupo Armas Trasmediterránea to supply approximately 40,000 tons of second-generation (2G) marine biofuels in the Canary Islands through December 2025, with the possibility of extension into 2026.
This marks Moeve’s largest biofuel supply deal to date and its first in the region, and helps in advancing decarbonization efforts in the Canary Islands. According to the company, the biofuels, produced at Moeve’s energy parks in Cádiz and Huelva, offer up to 90% lower CO₂ emissions over their lifecycle compared to traditional fuels.
Both companies and local port authorities see this agreement as a critical milestone for cleaner maritime operations. Armas Trasmediterránea CEO Sergio Vélez highlighted the company’s ongoing environmental efforts, while Moeve reaffirmed its goal of becoming the leading biofuel producer in Spain and Portugal by 2030 under its Positive Motion strategy.
Biofuels are regarded as an attractive choice by many stakeholders in the maritime industry. During the 2023 SAFETY4SEA Limassol Forum, Bill Stamatopoulos, Global Business Development Director, VeriFuel, gave a presentation on the use biofuels for the marine shipping sector. According to Stamatopoulos, biofuels present both opportunities and challenges for operators and stakeholders. These include:
Pros
- Four-year experience with successful trials since 2019
- No CAPEX is required
- Improved CO2 emission factor
- Limited safety risk as it is not toxic (like ammonia) and the flash point is always higher than 100 degrees, so it meets the SOLAS requirement
- Can use the existing bunkering infrastructure
- Mix with fossil fuels a.k.a. “drop in”
Cons
- Availability
- Cost (20-40% over the VLSFO price)
- Energy content is lower, but they have better ignition and combustion properties
- Technical challenges that are easily tackled in terms of long-term storage, microbial growth and corrosion
- Lack of crew training
- Storage and transfer temperatures above the cloud point
- Aviation may also use them so not all of the available biofuel is for shipping.
