The government laid the foundation stone for India's first port-based e-methanol plant at Deendayal Port Authority (DPA) in Kandla, Gujarat, on Saturday. According to reports from Business Standard, Rediff Moneynews, and ANI, the ₹2,300-crore plant is a joint initiative of DPA and Namrup-based Assam Petro-Chemicals Ltd (APCL), with the foundation stone laid by Union Minister of Ports, Shipping and Waterways Sarbananda Sonowal, Gujarat Chief Minister Bhupendra Patel, and Assam Chief Minister Himanta Biswa Sarma. As reported by ANI, India took a major step toward becoming a green energy exporter as the foundation stone was laid for the country's first port-based e-methanol plant at Deendayal Port Authority in Kandla, Gandhidham, Gujarat. The project brings together APCL's industrial capabilities with DPA's port infrastructure, positioning India as an exporter of green fuel to global shipping, offering e-methanol at a competitive rate that will enable cleaner shipping operations.
The 150-tonne-per-day plant will use renewable power, water and biogenic carbon dioxide (CO2) to produce e-methanol, a green fuel that will enable cleaner shipping. As reported by Business Standard, Rediff Moneynews, and ANI, the plant will supply e-methanol to vessels plying on the Asia-Europe International Trade Corridor, one of the world's busiest trade routes. The facility, being developed as a joint venture between DPA and APCL, is aimed at supplying cleaner fuel to the maritime sector and is part of Kandla's larger plan to develop itself as a green-fuel and bunkering hub. The plant will be installed in phases as scalable modules, with the project positioned as an exporter of green fuel to global shipping. The ministry stated that the plant will position India as a global leader in green fuel production and supply, with the facility being amongst the largest e-methanol production facilities in India.
According to Business Standard, Rediff Moneynews, and ANI, Phase I will add 50 tonnes per day of capacity at an investment of ₹1,200 crore, targeted for completion by January 2027. Phase II will add a further 100 tonnes per day at an investment of ₹1,100 crore, targeted for March 2027, taking the total investment to ₹2,300 crore. The capital contribution between the two partners stands at a ratio of 76:24 between DPA and APCL. As per Rediff Moneynews, DPA's contribution to the project includes equity capital of ₹567.32 crore, 75 acres of land, desalinated water, and renewable energy in the form of green hydrogen. The project has evolved from an earlier proposal, with DPA and APCL signing an MoU in January for the 150-TPD facility with the investment then pegged at ₹1,200 crore, with the latest announcement putting the project cost at about ₹2,300 crore.
As reported by Business Standard, Rediff Moneynews, and ANI, the ministry highlighted that the plant will produce green methanol at a much more competitive rate compared to other global producers, just $750 per tonne, against a global rate of $1,300 per tonne. The facility will create more than 3,500 direct and indirect jobs and will stimulate the complete green energy value chain in and around Kandla, including transportation, storage, supply and other associated ancillaries involved in production of green molecules. The project is expected to support the development of a wider ecosystem covering production, storage, handling and bunkering of green fuels at Kandla Port. The facility will position India as an exporter of green fuel to global shipping, offering e-methanol at a competitive rate that will enable cleaner shipping operations.
According to Business Standard, Rediff Moneynews, and ANI, 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. 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, alongside a proposed greenfield shipbuilding and repair cluster at Kuchhadi, Porbandar, which has received in-principle approval. The e-methanol facility represents a significant step in India's maritime decarbonisation efforts and positions the country as a global leader in green fuel production and supply. The plan was linked to the development of green shipping corridors and Kandla's potential role as a low-carbon marine-fuel supply point, with businessline reporting about Kandla's larger green-fuel plan in August 2025.
