India's First Port-Based e-Methanol Facility at Kandla

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Key takeaways

India's first port-based e-methanol facility is being set up at Kandla, Gujarat, at a total cost of Rs 2,300 crore.
The plant is a joint venture between the Deendayal Port Authority (DPA) and Assam Petro-Chemicals Ltd. (APCL) with a 76:24 capital ratio.
The facility will produce 150 tonnes of e-methanol daily by March 2027 to supply ships along the Asia-Europe trade corridor.
The produced green fuel is expected to cost US$ 750 per tonne, which is significantly lower than the global rate of US$ 1,300 per tonne.
This initiative aligns with India's goal to achieve Net Zero emissions by 2070 and become a top ship-owning nation by 2047.

India has laid the foundation stone for its first port-based e-methanol production facility at the Deendayal Port Authority (DPA) in Kandla, Gujarat.
This project marks a major milestone in India's efforts to supply green maritime fuel to the global shipping industry.

The project is a joint venture between the Deendayal Port Authority (DPA) under the Ministry of Ports, Shipping and Waterways and Assam Petro-Chemicals Ltd. (APCL), a state PSU.
The total cost of this state-of-the-art industrial plant is Rs 2,300 crore, with a capital contribution ratio of 76:24 between DPA and APCL.
The project is located across 75 acres of port land within the logistics zone of the Deendayal Port in Kandla, Gandhidham, Kutch district, Gujarat.
This facility will produce synthetic, carbon-neutral e-methanol by combining green hydrogen made from renewable electricity with captured biogenic carbon dioxide.

The plant will have a total production capacity of 150 tonnes of e-methanol per day, which will be developed in two distinct phases.
Phase I will set up a capacity of 50 tonnes per day with an investment of Rs 1,200 crore by January 2027.
Phase II will add another 100 tonnes per day with an investment of Rs 1,100 crore by March 2027.
The facility relies on dedicated renewable power, on-site desalinated water for electrolysis, and captured biogenic carbon dioxide as circular inputs.
The plant is designed to produce green methanol at a highly competitive cost of US$ 750 per tonne, which is much lower than the current global market rate of about US$ 1,300 per tonne.
The Deendayal Port Authority (DPA) is contributing an equity stake of Rs 567.32 crore along with 75 acres of land and dedicated pipeline and energy infrastructure.
The project is expected to create more than 3,500 direct and indirect jobs while building a green molecules ecosystem in the region.

The e-methanol will be supplied to cargo vessels operating on the Asia-Europe International Trade Corridor, positioning Kandla as a key green-fuel hub on the Singapore-Rotterdam route.
The project directly supports the International Maritime Organization's emission-reduction goals by helping global shipping fleets transition to cleaner fuels.
It aligns with India's Net Zero 2070 goal, energy self-reliance targets, and the Make in India, Make for the World initiative.
The venture showcases strong inter-state cooperation by linking the petrochemical expertise of Assam with the port infrastructure of Gujarat.

This project is part of India's larger maritime plans, which include adding 100 ships to the merchant fleet over the next 5 years.
India also aims to become one of the top five ship-owning nations by the year 2047 while developing major domestic shipbuilding and repair infrastructure.