India's First Port-Based e-Methanol Production Facility Foundation Laid at Kandla
India has initiated the development of its first port-based e-methanol production facility at Deendayal Port Authority (DPA) in Kandla, Gujarat, with a foundation stone ceremony attended by Gujarat Chief Minister Bhupendra Patel, Union Minister of Ports, Shipping and Waterways Sarbananda Sonowal, and Assam Chief Minister Dr Himanta Biswa Sarma. The plant represents a significant step toward India's Net Zero 2070 goal and positions the country as a green fuel exporter for global shipping.
The 150-tonne-per-day (TPD) facility will utilize renewable power, water, and biogenic CO2 to produce e-methanol, a green fuel intended to supply vessels operating on the Asia-Europe International Trade Corridor. The project is structured as a joint initiative between Deendayal Port Authority and Assam Petro-Chemicals Ltd (APCL) with a total investment of ₹2,300 crore. The capital contribution ratio is 76:24 between DPA and APCL, with DPA's contribution including equity capital of ₹567.32 crore, 75 acres of land, desalinated water, and renewable energy in the form of green hydrogen.
The project will be implemented in two phases: Phase I will establish 50 TPD capacity with an investment of ₹1,200 crore, targeted for completion by January 2027, followed by Phase II adding 100 TPD capacity with an investment of ₹1,100 crore, targeted for March 2027. The plant is expected to produce green methanol at a competitive rate of US$750 per tonne, significantly below the global rate of US$1,300 per tonne.
The facility is projected to create more than 3,500 direct and indirect jobs while stimulating the complete green energy value chain in the Kandla region, including transportation, storage, supply, and associated ancillary services. The project aligns with broader initiatives to expand India's maritime sector, including plans to add 100 new ships to the merchant fleet over five years and make India one of the world's top five ship-owning nations by 2047.
Additional maritime developments mentioned include the DPA-Cochin Shipyard Limited shipbuilding project at Vadinar worth ₹1,520 crore and a proposed greenfield shipbuilding and repair cluster at Kuchhadi, Porbandar, which has received in-principle approval.