India Lays Foundation of Its First Port-Based e-Methanol Production Facility at Kandla

India has taken a big step towards becoming a supplier of green fuel for ships. The country laid the foundation stone for its first port-based e-methanol facility at Deendayal Port Authority (DPA), Kandla, Gujarat. Gujarat CM Bhupendra Patel, Union Minister Sarbananda Sonowal and Assam CM Himanta Biswa Sarma were present at the event.

A New Rs 2,300 Crore e-Methanol Plant Will Be Established in Kandla

The plant will be built in two phases with a total investment of ₹2,300 crore.

• Phase 1: Adds 50 tonnes per day at ₹1,200 crore, to be ready by January 2027.
• Phase 2: Adds 100 tonnes per day at ₹1,100 crore, to be ready by March 2027.

Deendayal Port Authority and Assam Petro-Chemicals Partner for First Port-Based e-Methanol Production

The project is a joint effort of DPA and Assam Petro-Chemicals Ltd (APCL), based in Namrup, Assam. Their capital share is in the ratio of 76:24. DPA will provide ₹567.32 crore as equity, 75 acres of land, desalinated water, and green hydrogen.

Key Features of India's First Port-Based e-Methanol Production Facility

1. Total capacity of 150 tonnes of e-methanol per day.
2. Uses renewable power, water, and biogenic CO₂ to make the fuel.
3. Expected cost of about US750pertonne,againstaglobalpriceofnearlyUS1,300.
4. Will create over 3,500 direct and indirect jobs.
5. Will support a green energy ecosystem around Kandla, including storage, transport, and supply.

Aim of India's First Port-Based e-Methanol Production Facility

The main aim is to supply green fuel to ships on the Asia-Europe trade corridor, one of the busiest sea routes in the world. Minister Sonowal said Kandla could become a green-fuel hub on the Singapore-Rotterdam route and a model for other ports.

The project supports India's Net Zero 2070 target, energy self-reliance and the "Make in India, Make for the World" vision. It also fits the government's plan to add 100 new ships to the merchant fleet in five years and to make India a top five ship-owning nation by 2047.