India’s first port-based e-methanol plant will be developed at Deendayal Port Authority in Kandla, Gujarat, with a total investment of ₹2,300 crore.
India’s first port-based ₹2,300 crore e-methanol plant will be developed at Deendayal Port Authority (DPA) in Kandla, Gujarat.
The foundation stone for the project was laid by Gujarat Chief Minister Bhupendra Patel, Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal and Assam Chief Minister Dr Himanta Biswa Sarma.
The facility will have a total production capacity of 150 tonnes of e-methanol per day.
It will use renewable power, water and biogenic CO₂ to produce the green fuel.
₹2,300 Crore E-Methanol Plant to Be Built in Two Phases
The ₹2,300 crore e-methanol plant is a joint initiative of the Deendayal Port Authority and Assam Petro-Chemicals Ltd (APCL).
The project will be developed in two scalable phases.
The first phase will add 50 tonnes per day of production capacity at an investment of ₹1,200 crore. It is targeted for completion by January 2027.
The second phase will add another 100 tonnes per day at an investment of ₹1,100 crore. It is targeted for completion by March 2027.
The capital contribution between DPA and APCL will be in a 76:24 ratio.
Kandla E-Methanol Plant to Supply Green Fuel to Ships
The e-methanol produced at the facility is intended for vessels operating on the Asia-Europe International Trade Corridor.
The project is expected to strengthen India’s production and supply capabilities for green maritime fuel.
The government said the plant is expected to produce green methanol at around US$750 per tonne, compared with a global rate of about US$1,300 per tonne.
DPA to Provide Land, Water and Renewable Energy
DPA’s contribution includes ₹567.32 crore in equity capital and 75 acres of land.
Its contribution will also include desalinated water and renewable energy in the form of green hydrogen.
The facility is expected to be among India’s largest e-methanol production plants.
The project is projected to create more than 3,500 direct and indirect jobs.
It is also expected to support a wider green energy ecosystem around Kandla through transportation, storage, supply and other ancillary activities.
E-Methanol Project Supports Green Shipping
The ₹2,300 crore e-methanol plant is aligned with India’s target of achieving Net Zero emissions by 2070.
The project also supports the government’s focus on energy self-reliance and the Make in India and Make for the World initiatives.
The government plans to add 100 new ships to India’s merchant fleet over the next five years and aims to make India one of the world’s top five ship-owning nations by 2047.
Deendayal Port Authority is also pursuing other maritime infrastructure projects.
A DPA-Cochin Shipyard Limited shipbuilding project at Vadinar, worth ₹1,520 crore, is under way. A proposed greenfield shipbuilding and repair cluster at Kuchhadi in Porbandar has also received in-principle approval.
Gujarat to Strengthen Green Fuel Infrastructure
Gujarat Chief Minister Bhupendra Patel said the project would use the state’s renewable energy potential and coastline to supply green fuel to international shipping.
Patel said the facility would create an export opportunity by converting Gujarat’s renewable energy strength into green fuel for global shipping.
Union Minister Sarbananda Sonowal said the project would help India develop capabilities to supply clean fuel for international maritime trade.
He said Kandla could develop into a green-fuel hub on the Singapore-Rotterdam route and described the facility as a model that could be replicated at other major ports.
Assam Petro-Chemicals Links Northeast with Kandla
Assam Chief Minister Himanta Biswa Sarma highlighted the role of Assam Petro-Chemicals in the project.
APCL is based in Namrup, Assam.
Sarma said Assam’s natural resources, including the Brahmaputra, sunshine and hydropower potential, could support the state’s development as a green energy hub.
The participation of APCL in the Kandla e-methanol project connects the capabilities of Assam with India’s wider clean energy ambitions.
The foundation stone ceremony was held at the DPA Exhibition Ground in Gandhidham.
Senior officials and public representatives from Gujarat, Assam and the Deendayal Port Authority attended the event.
Source: DD India
