India's First Port-based e-Methanol Production Facility
Why in News?
India's first port-based e-methanol production facility is officially underway after its foundation stone was laid on 26 September 2026 at the Deendayal Port Authority (DPA) in Kandla, Gujarat by Union Shipping Minister Sarbananda Sonowal, Gujarat CM Bhupendra Patel, and Assam CM Himanta Biswa Sarma.
Investment & Partnership
- Total Project Cost: The project involves a total capital investment of ₹2,300 crore.
- The Joint Venture: It is being developed through a collaboration between the Deendayal Port Authority (DPA) and Namrup-based Assam Petro-Chemicals Ltd. (APCL).
- Equity Sharing Ratio: The capital contribution stands at 76:24 between DPA and APCL.
- DPA's Contribution: DPA is providing ₹567.32 crore in equity capital, alongside 75 acres of land, desalinated water, and green hydrogen power.
Capacity & Phased Timeline
- Total Capacity: The plant is engineered to produce 150 tonnes per day (TPD) of e-methanol.
- Phase I: Targets 50 TPD capacity with an investment of ₹1,200 crore, slated for completion by January 2027.
- Phase II: Targets an additional 100 TPD capacity with an investment of ₹1,100 crore, slated for completion by March 2027.
Technology & Raw Material
- Eco-Friendly Input: The facility will synthesise e-methanol using renewable power, water, and biogenic COâ‚‚.
- Green Molecules Value Chain: The infrastructure is strategically designed to handle everything from green hydrogen production to final transport and storage of green molecules at the port.
Strategic Significance & Impact
- Targeting Global Trade Routes: The fuel will primarily supply cargo vessels plying the Asia-Europe International Trade Corridor (one of the world's busiest routes), transforming Kandla into a green refuelling hub akin to Singapore or Rotterdam.
- Employment: The plant is projected to generate over 3,500 direct and indirect jobs, boosting local ancillary industries.
- National Goals: It directly supports India's broader target to achieve Net Zero emissions by 2070 and advances the National Green Hydrogen Mission.
