Gandhidham: India is set to get its first port-based e-methanol production facility, with the foundation stone for a ₹2,300-crore project laid at Deendayal Port Authority (DPA) in Kandla on Saturday.
Gujarat Chief Minister Bhupendra Patel, Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal and Assam Chief Minister Himanta Biswa Sarma jointly laid the foundation stone for the facility.
The plant will produce 150 tonnes of e-methanol per day using renewable energy, water and biogenic carbon dioxide. The green fuel is intended to support cleaner shipping and will be supplied to vessels operating along the busy Asia-Europe trade corridor.
The project is being developed jointly by DPA and Assam Petro-Chemicals Ltd (APCL), with the investment planned in two phases.
The first phase, involving 50 tonnes per day of capacity, will cost ₹1,200 crore and is targeted for completion by January 2027. The second phase, adding another 100 tonnes per day, will involve ₹1,100 crore and is scheduled for March 2027.
The project is expected to generate more than 3,500 direct and indirect jobs and support a wider green-energy ecosystem covering transportation, storage and supply.
According to the government, the facility is expected to produce e-methanol at around $750 per tonne, compared with an estimated global cost of $1,300 per tonne.
Speaking at the event, Sarbananda Sonowal said the project would strengthen India’s role in supplying clean fuel to the global maritime sector. He said Kandla could emerge as a major green-fuel hub for international shipping.
Bhupendra Patel said Gujarat’s renewable-energy potential and coastline could help establish the state as a gateway for India’s green-energy exports.
Himanta Biswa Sarma said the participation of Assam Petro-Chemicals in the project reflected cooperation between the Northeast and western India in building India’s clean-energy economy.
The project is aligned with India’s broader target of achieving net-zero emissions by 2070 and expanding domestic capabilities in clean energy and maritime infrastructure.
