India is moving closer to becoming a major exporter of green fuel with the launch of the country’s first port-based e-methanol plant at Deendayal Port in Kandla, Gujarat.
Gujarat Chief Minister Bhupendra Patel, Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal and Assam Chief Minister Himanta Biswa Sarma laid the foundation stone for the project.
The plant will produce 150 tonnes of e-methanol per day using renewable energy, water and biogenic carbon dioxide. The green fuel is expected to support cleaner shipping and will be supplied to vessels operating along the Asia-Europe International Trade Corridor.
Rs 2,300 Crore Project
The project is a joint initiative of Deendayal Port Authority (DPA) and Assam Petro-Chemicals Ltd (APCL), based in Namrup, Assam. The plant will be developed in phases using scalable modules.
The first phase will add a production capacity of 50 tonnes per day at an investment of Rs 1,200 crore. It is targeted for completion by January 2027.
The second phase will add another 100 tonnes per day with an investment of Rs 1,100 crore and is expected to be completed by March 2027. Together, the two phases will take the total investment to Rs 2,300 crore.
Green Fuel for Global Shipping
The Kandla facility is expected to help India enter the global market for green shipping fuels. The project aims to produce e-methanol at around $750 per tonne, compared with an estimated global cost of about $1,300 per tonne.
DPA will hold a 76% share in the project, while APCL will hold 24%. DPA’s contribution includes Rs 567.32 crore in equity, 75 acres of land, desalinated water and renewable energy in the form of green hydrogen.
The facility is expected to become one of India’s largest e-methanol production plants and generate more than 3,500 direct and indirect jobs.
Boost to Kandla’s Green Energy Ecosystem
The project is also expected to support a wider green energy supply chain around Kandla, covering transportation, storage, fuel supply and other services linked to the production of green fuels.
The development is part of India’s broader push to expand renewable energy, clean shipping and the maritime sector. It also supports the country’s target of achieving net-zero emissions by 2070.
The government is also working to strengthen India’s merchant shipping industry, with plans to add 100 new ships over the next five years and increase the country’s presence among the world’s leading ship-owning nations by 2047.
Other maritime projects are also being developed, including the Rs 1,520 crore DPA-Cochin Shipyard shipbuilding project at Vadinar and a proposed greenfield shipbuilding and repair cluster at Kuchhadi in Porbandar.
Kandla Set to Become a Green Fuel Hub
The e-methanol plant is expected to strengthen Kandla’s role in the global green fuel supply chain, particularly along major international shipping routes.
The project also brings together Gujarat’s port infrastructure and renewable energy potential with Assam’s industrial capabilities, creating a link between the two states in India’s clean energy expansion.
