India's first port-based e-Methanol production facility to produce and supply green fuel to ships
India launches its first port-based e-methanol plant at Deendayal Port to supply green fuel to global shipping routes.
In a landmark move toward becoming a global green energy exporter, India has laid the foundation stone for the country's first port-based e-methanol plant. Located at the Deendayal Port Authority (DPA) in Kandla, Gujarat, this facility marks a significant step in the nation's journey toward sustainable energy and maritime leadership.
The foundation stone ceremony was attended by Gujarat Chief Minister Bhupendra Patel, Union Minister of Ports, Shipping and Waterways Sarbananda Sonowal, and Assam's Chief Minister Himanta Biswa Sarma. This collaborative project highlights the synergy between Gujarat and Assam in driving India's green revolution.
A Game-Changer for Global Shipping
The new facility is designed to produce 150 tonnes of e-methanol per day using renewable power, water, and biogenic CO2. This green fuel is intended to support cleaner shipping operations, specifically targeting vessels traveling along the Asia-Europe International Trade Corridor—one of the most critical and busiest maritime routes in the world.
By producing e-methanol locally, India aims to disrupt the global market with highly competitive pricing. The plant is expected to produce green methanol at approximately US$750 per tonne, significantly lower than the current global average of US$1,300 per tonne.
Project Details and Scalability
The Rs 2,300 crore project is a joint venture between the Deendayal Port Authority (DPA) and Assam Petro-Chemicals Ltd. (APCL), with an investment ratio of 76:24. The development will occur in two distinct phases:
- Phase I: An investment of Rs 1,200 crore to add 50 tonnes of daily capacity, targeted for completion by January 2027.
- Phase II: An investment of Rs 1,100 crore to add an additional 100 tonnes of daily capacity, targeted for March 2027.
The DPA's contribution to this massive undertaking includes equity capital of Rs 567.32 crore, 75 acres of land, desalinated water, and renewable energy in the form of green hydrogen.
Economic Impact and National Vision
Beyond fuel production, the plant is set to be a massive economic engine for the region. It is expected to create more than 3,500 direct and indirect jobs and stimulate a complete green energy value chain in the Kandla area, including transportation, storage, and supply services.
This initiative aligns with several national objectives:
- Net Zero Emissions: Supports Prime Minister Narendra Modi's commitment to reach Net Zero by 2070.
- Atmanirbharta: Promotes self-reliance in energy and the "Make in India, Make for the World" philosophy.
- Maritime Expansion: Supports the government's plan to add 100 new ships to the merchant fleet over the next five years, aiming for India to be among the top five ship-owning nations by 2047.
Gujarat Chief Minister Bhupendra Patel emphasized that the facility turns renewable strength into an exportable asset, making the Gujarat coast a gateway for India's green energy to the world. The project stands as a shining example of Ek Bharat Shreshtha Bharat, uniting the industrial strengths of Assam and Gujarat for the nation's progress.