Marking a major step in clean energy and sustainable shipping, India’s first port-based e-methanol plant was laid on Saturday at the Deendayal Port Authority (DPA) in Kandla, Gujarat.
The high-profile ceremony was jointly graced by Gujarat Chief Minister Bhupendra Patel, Union Minister of Ports, Shipping and Waterways (MoPSW) Sarbananda Sonowal, and Assam Chief Minister Dr Himanta Biswa Sarma.
The ambitious project—a collaborative joint venture between Deendayal Port Authority and Namrup-based Assam Petro-Chemicals Ltd. (APCL)—involves a total capital investment of Rs 2,300 crore structured at a 76:24 equity partnership ratio between DPA and APCL, respectively.
Operating at a massive 150-tonne-per-day capacity upon full completion, the facility will utilise renewable power, water, and biogenic $\text{CO}_2$ to produce e-methanol. This green fuel will be supplied directly to vessels navigating the Asia-Europe International Trade Corridor, one of the world’s busiest shipping lanes.
The project will be executed in structured phases:
- Phase I: Adds 50 tonnes per day of capacity with an investment of Rs 1,200 crore, targeted for completion by January 2027.
- Phase II: Adds a further 100 tonnes per day with an investment of Rs 1,100 crore, targeted for completion by March 2027.
DPA is contributing Rs 567.32 crore, 75 acres of land, desalinated water, and green hydrogen-based renewable energy. Set to be one of India’s largest e-methanol hubs, the plant will create over 3,500 jobs and boost the green energy chain.
Competitive Edge and Economic Vision
Highlighting the economic viability of the project, officials noted that the plant will produce green methanol at a highly competitive rate of roughly US$750 per tonne, significantly lower than the global average of US$1,300 per tonne.
During the ceremony, leaders highlighted a strong cultural and economic partnership between Gujarat and Assam.
Gujarat CM Bhupendra Patel stated that the Kandla facility turns the state’s renewable energy strength into a major export, positioning Gujarat’s coast as a global gateway for clean energy.
Union Minister Sarbananda Sonowal noted that Kandla is set to become a vital green-fuel hub along the busy Singapore–Rotterdam trade route.
Assam CM Dr Himanta Biswa Sarma added that Assam’s vast natural potential enables an Assam-based company to bridge the Northeast and Gujarat, driving India’s clean energy future.
The initiative aligns directly with Prime Minister Narendra Modi’s vision of achieving Net Zero emissions by 2070, fostering national energy self-reliance (Atmanirbharta), and advancing the “Make in India, Make for the World” mandate.
