India launches ₹2,300-crore port-based e-methanol plant in Kandla
India inaugurated its first port-based e-methanol facility at Kandla, a joint venture between Deendayal Port Authority and Assam Petro-Chemicals Ltd costing ₹2,300 crore. The plant will produce 150 tonnes per day of green fuel for vessels on the Asia-Europe trade corridor.
At a ceremony in Kandla, Gujarat, Union Shipping Minister Sarbananda Sonowal marked the start of India’s first port-based e-methanol plant, a collaboration between Deendayal Port Authority and Assam Petro-Chemicals Ltd. The ₹2,300 crore project will be built in two stages, delivering an initial 50 tonnes per day by January 2027 and expanding to a total of 150 tonnes per day by March 2027. Powered by renewable energy, desalinated water and green hydrogen, the plant will convert biogenic CO₂ into e-methanol, a clean marine fuel priced at roughly USD 750 per tonne, markedly cheaper than the global benchmark of USD 1,300.
The fuel is intended for ships navigating the busy Asia-Europe International Trade Corridor, enhancing India’s role in maritime decarbonisation. Investment shares are split 76:24 between DPA and APCL, with DPA contributing land, equity and green hydrogen. The venture is projected to generate over 3,500 direct and indirect jobs and stimulate a broader green-energy supply chain around Kandla.
Why it matters
The plant gives India a foothold in green maritime fuel, supporting global shipping decarbonisation and export opportunities.
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