Foundation Laid for India’s First Port-Based E-Methanol Plant at Kandla, with Rs 2,300 Crore Investment

India has taken a step towards developing domestic green maritime fuel production with the foundation stone laid for the country’s first port-based e-methanol production facility at Deendayal Port Authority (DPA) in Kandla, Gujarat. Gujarat Chief Minister Bhupendra Patel, Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal, and Assam Chief Minister Dr Himanta Biswa Sarma laid the foundation stone at the DPA Exhibition Ground in Gandhidham.

The facility will have a total production capacity of 150 tonnes of e-methanol per day and will use renewable power, water and biogenic CO2 to produce the fuel. The e-methanol is intended for vessels operating on the Asia-Europe International Trade Corridor. 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.

Rs 2,300 Crore Investment in Two Phases

The project is a joint initiative of DPA and Assam Petro-Chemicals Ltd (APCL), based in Namrup, Assam, and will be developed in two scalable phases. The first phase will add 50 tonnes per day of capacity at an investment of Rs 1,200 crore and is targeted for completion by January 2027. The second phase will add another 100 tonnes per day at an investment of Rs 1,100 crore, with completion targeted for March 2027.

The capital contribution between DPA and APCL will be in a 76:24 ratio. DPA’s contribution includes Rs 567.32 crore in equity capital, 75 acres of land, desalinated water and renewable energy in the form of green hydrogen.

The plant is projected to create more than 3,500 direct and indirect jobs and support a broader green energy ecosystem around Kandla, including transportation, storage and supply activities.

Green Fuel for Global Shipping

The project is aligned with India’s target of achieving net-zero emissions by 2070 and the government’s focus on energy self-reliance. It comes amid a broader expansion of India’s maritime sector, with the government planning to add 100 new ships to the merchant fleet over the next five years and aiming to make India one of the world’s top five ship-owning nations by 2047.

DPA is also pursuing other projects, including a Rs 1,520 crore DPA-Cochin Shipyard Limited shipbuilding project at Vadinar and a proposed greenfield shipbuilding and repair cluster at Kuchhadi in Porbandar, which has received in-principle approval.

Patel said the project would leverage Gujarat’s renewable energy potential and coastline to supply green fuel to international shipping. “Kutch and the long coastline of Gujarat will now power the world’s ships through Kandla,” he said.

Sonowal said the project would help India move from being a participant in global trade to becoming a supplier of the clean fuel that powers it. He added that Kandla could develop into a green-fuel hub on the Singapore-Rotterdam route and that the facility could serve as a model for other major ports.

Sarma said the project demonstrated the Northeast’s role in India’s clean energy economy. “Today, an Assam company carries that strength from Namrup to Kandla, proving that the Northeast will power India’s clean energy future,” he said.

Also present were Kutch MP Vinod Chavda, Gandhidham MLA Maltiben Kishor Maheshwari, APCL Chairman Bikul Deka, Vice Chairman Hemanta Gogoi and DPA Chairman Sushil Kumar Singh.