New Delhi: India has taken a major step towards becoming a green energy exporter with the foundation stone laid for the country’s first port-based e-methanol plant at Deendayal Port Authority (DPA) in Kandla, Gandhidham, Gujarat.
The port-based e-methanol plant will have a total production capacity of 150 tonnes per day and will use renewable power, water and biogenic CO2 to produce e-methanol, a green fuel intended to support cleaner shipping.
The facility will supply green fuel to vessels operating on the Asia-Europe International Trade Corridor, one of the world’s busiest trade routes. The project is expected to position India as an exporter of green fuel to the global shipping industry.
₹2,300 Crore Port-based e-Methanol Plant at Kandla
Gujarat Chief Minister Bhupendra Patel, Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal and Assam Chief Minister Dr Himanta Biswa Sarma laid the foundation stone for the project.
The e-methanol plant involves an investment of ₹2,300 crore and is a joint initiative of Deendayal Port Authority (DPA) and Namrup-based Assam Petro-Chemicals Ltd. (APCL).
The project will be installed in phases through scalable modules. Phase I will add 50 tonnes per day of production capacity at an investment of ₹1,200 crore and is targeted for completion by January 2027.
Phase II will add another 100 tonnes per day at an investment of ₹1,100 crore and is targeted for completion by March 2027.
Once both phases are completed, the e-methanol plant will have a total capacity of 150 tonnes per day, taking the overall investment to ₹2,300 crore.
The capital contribution between DPA and APCL stands at a ratio of 76:24.
DPA’s contribution to the e-methanol plant includes equity capital of ₹567.32 crore, 75 acres of land, desalinated water and renewable energy in the form of green hydrogen.
The facility is expected to be among the largest e-methanol production facilities in India and create more than 3,500 direct and indirect jobs.
The project is also expected to stimulate the green energy value chain around Kandla, including transportation, storage, supply and other associated activities involved in the production of green molecules.
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Green Fuel for Global Shipping
The Kandla port-based e-methanol plant will use renewable power, water and biogenic CO2 to produce green methanol for the shipping industry.
According to the announcement, the plant will produce green methanol at a competitive rate of US$750 per tonne, compared with a global rate of US$1,300 per tonne.
The facility is intended to support India’s emergence as a global producer and supplier of green fuel. Its location at Deendayal Port Authority is also expected to facilitate the supply of e-methanol to ships operating along the Asia-Europe International Trade Corridor.
Supporting Net Zero 2070 and Energy Self-Reliance
The port-based e-methanol plant supports Prime Minister Narendra Modi’s commitment to achieving Net Zero emissions by 2070.
The port-based e-methanol plant project is also aimed at supporting the implementation of the government’s missions of Atmanirbharta in energy, Make in India and Make for the World.
The port-based e-methanol plant project comes amid a broader push to expand India’s maritime sector. The government plans to add 100 new ships to the country’s merchant fleet over the next five years and aims to make India one of the world’s top five ship-owning nations by 2047.
Global shipping major Maersk has also begun ordering containers manufactured in India.
As part of Deendayal Port Authority’s wider mega port push, the DPA-Cochin Shipyard Limited (CSL) shipbuilding project at Vadinar, worth ₹1,520 crore, is also underway.
A proposed greenfield shipbuilding and repair cluster at Kuchhadi, Porbandar, has also received in-principle approval.
Port-based e-Methanol Plant: Gujarat and Assam Collaboration
The port-based e-methanol plant brings together Deendayal Port Authority in Gujarat and Assam Petro-Chemicals Ltd. from Namrup in Assam.
Sarbananda Sonowal, who represents Dibrugarh in the Lok Sabha, noted that Assam Petro-Chemicals is based in Namrup in his constituency. He also highlighted cultural links between Assam and Gujarat, referring to the legend of Lord Krishna of Dwarka and Rukmini of the Northeast, the story of Usha and Aniruddha of Tezpur, and the works of the 15th-century Assamese saint Srimanta Sankaradeva.
The project was also described as an example of Ek Bharat Shreshtha Bharat, bringing together the strengths of Assam and Gujarat.
“Under Prime Minister Narendra Modi’s leadership, India is growing faster and greener than ever, and Gujarat is proud to lead that journey,” Bhupendra Patel said.
“Kutch and the long coastline of Gujarat will now power the world’s ships through Kandla. This plant turns our renewable strength into an export and makes Gujarat’s coast a gateway for India’s green energy to the world.”
Sonowal on Kandla as Green-Fuel Hub
Speaking about the port-based e-methanol plant, Sarbananda Sonowal said the project would contribute to India’s role in supplying clean fuel for global trade.
“PM Narendra Modi has given India the confidence to lead, not follow,” Sarbananda Sonowal said. “Just as India is now building its own ships and containers, it will soon make the clean fuel that powers global trade.
In the years ahead, Kandla will become a green-fuel hub on the Singapore–Rotterdam route, and this plant is a model for every major port in the country.
It will open skilled careers for our youth and carry India firmly toward net zero by 2070 and in achieving the goals of VIKSIT BHARAT by 2047.”
Assam’s Role in India’s Green Energy Push
Assam Chief Minister Dr Himanta Biswa Sarma said the project reflects the state’s contribution to India’s clean energy ambitions.
“PM Narendra Modi has placed the Northeast at the heart of India’s growth story, and Assam is repaying that trust with enterprise and ambition,” Dr Himanta Biswa Sarma said.
“Blessed with the mighty Brahmaputra, abundant sunshine and vast hydropower potential, Assam is ready to become a green energy powerhouse.
Today, an Assam company carries that strength from Namrup to Kandla, proving that the Northeast will power India’s clean energy future.”
The port-based e-methanol plant is being developed through the collaboration between DPA and APCL, linking Assam’s industrial capabilities with Gujarat’s port and renewable energy infrastructure.
