India will now power world's ships with Green Energy: Shipping Minister Sonowal
Union Minister Sonowal announces a massive green methanol plant at Kandla Port to fuel global shipping and drive India toward net zero goals.
In a massive leap toward global maritime leadership, India is set to become a major exporter of clean fuel for international shipping. Union Minister of Ports, Shipping and Waterways, Sarbananda Sonowal, announced that the upcoming e-methanol plant at Kandla, Gujarat, will produce green energy capable of powering vessels across the globe.
The project marks a significant milestone in India's journey toward achieving net zero emissions by 2070 and realizing the vision of a Viksit Bharat by 2047. By producing green methanol, India aims to transition from a consumer to a key provider of the clean fuels that drive international trade.
A Strategic Hub on Global Trade Routes
The facility at Kandla is designed to transform the region into a vital green-fuel hub. According to Minister Sonowal, the plant will specifically target the Singapore–Rotterdam route, one of the busiest maritime corridors in the world. This positioning will allow Indian-made green fuel to supply vessels operating on the Asia-Europe International Trade Corridor.
"PM Narendra Modi has given India the confidence to lead, not follow," Sonowal stated. He emphasized that just as India is advancing in ship and container manufacturing, it is now poised to master the production of the clean fuels that power global commerce.
Cooperative Federalism: The Assam-Gujarat Alliance
The project serves as a landmark example of Ek Bharat Shreshtha Bharat, showcasing a powerful collaboration between the states of Assam and Gujarat. The initiative is a joint venture between the Deendayal Port Authority (DPA) and the Namrup-based Assam Petro-Chemicals Ltd (APCL).
Assam Chief Minister Himanta Biswa Sarma hailed the project as a significant moment for the relationship between the two states. He expressed gratitude to the Government of Gujarat and the DPA for allowing Assam to participate in this massive undertaking, even extending an invitation to officials to visit Assam's own methanol facilities.
The Minister also highlighted the deep cultural and historical ties connecting the two regions, citing shared legends and the spiritual legacy of figures like Srimanta Sankaradeva, which bind the Northeast to the West.
Project Details and Economic Impact
The ambitious ₹2,300 crore project will be implemented in scalable phases to ensure efficient growth:
- Phase I: An investment of ₹1,200 crore to establish a 50-tonne-per-day capacity, targeted for completion by January 2027.
- Phase II: An additional investment of ₹1,100 crore to increase capacity by another 100 tonnes per day, expected by March 2027.
The capital structure involves a 76:24 ratio between DPA and APCL. DPA's contribution includes ₹567.32 crore in equity, 75 acres of land, desalinated water, and renewable energy in the form of green hydrogen.
Beyond fuel production, the plant is expected to be a massive engine for employment and industrial growth. It is projected to create more than 3,500 direct and indirect jobs, stimulating a complete green energy value chain that includes transportation, storage, and supply industries around the Kandla region.