India is set to take a major step towards becoming a global supplier of green shipping fuel, with the laying of the foundation stone for the country’s first port-based e-methanol plant at the Deendayal Port Authority (DPA) in Kandla.
This ₹2,300 crore project is a joint initiative between DPA and Assam Petro-chemicals Limited (APCL). It will have a total production capacity of 150 tonnes of e-methanol per day. The fuel will be produced using renewable energy, water, and biogenic carbon dioxide, with the aim of promoting clean shipping along the Asia-Europe trade corridor.
Gujarat CM Bhupendra Patel, Union Minister Sarbananda Sonowal and Assam CM Himanta Biswa Sarma laid the foundation stone in Gandhidham. The project will be developed in two phases. Phase I, involving an investment of ₹1,200 crore, will add 50 tonnes per day of capacity and is targeted for completion by January 2027. Phase II, with an investment of ₹1,100 crore, will add another 100 tonnes per day by March 2027.
DPA will hold a 76% stake in this project, while APCL will hold a 24% stake. DPA’s contribution includes equity worth ₹567.32 crore, 75 acres of land, desalinated water, and renewable energy in the form of green hydrogen.
The facility is expected to create more than 3,500 direct and indirect jobs and boost the green-fuel ecosystem around Kandla, including transportation, storage and supply. Project officials estimate that the plant could produce e-methanol at around $750 per tonne, compared with a cited global cost of about $1,300 per tonne.
The project supports India’s green-energy and maritime expansion, along with its net-zero emissions target for 2070 and push for energy self-reliance.
The Kandla project adds to India’s expanding maritime infrastructure, including the ₹1,520-crore DPA-Cochin Shipyard project at Vadinar, while strengthening cooperation between Assam and Gujarat through APCL’s partnership with DPA.
(PIB)
