India to Host Country’s First Port-Based E-Methanol Plant; ₹2,300 Crore Investment
A major project has been launched to reduce pollution in India’s maritime sector. The foundation stone for the country’s first port-based e-methanol production plant has been laid in Kandla, Gujarat. A total investment of ₹2,300 crore will be made in this project. The plant will have a capacity of 150 tonnes per day and is expected to generate over 3,500 jobs.
Foundation Laid for Country’s First Port-Based E-Methanol Plant in Kandla
On Saturday, the government laid the foundation stone for the country’s first port-based e-methanol production plant in Kandla, Gujarat. The project entails an investment of ₹2,300 crore. Union Minister for Ports, Shipping and Waterways, Sarbananda Sonowal, laid the foundation stone at an event held at the Deendayal Port Authority in Kandla. He stated that India is emerging as a leading global maritime power and will now power ships worldwide using green energy.
Capacity of 150 Tonnes Per Day
This green fuel plant, with a capacity of 150 tonnes per day, is a joint project between the Deendayal Port Authority and Assam Petro-chemicals Limited. The plant will produce e-methanol using renewable energy, water, and carbon dioxide sourced from biological origins. This process will yield clean fuel to supply ships operating on the Asia-Europe international trade route—one of the busiest trade routes in the world.
India to Become an Exporter of Green Fuel
According to an official statement, this project will establish India as an exporter of green fuel for the global maritime transport sector. The statement noted that green methanol production in India would be more cost-competitive compared to other global producers. The production cost in India is estimated at around $750 per tonne, whereas the global rate is reported to be $1,300 per tonne. Plant to be built in two phases
This ₹2,300 crore project will be established in phases, featuring expandable units. The first phase involves an investment of ₹1,200 crore to add a daily production capacity of 50 tonnes, with a target completion date of January 2027. The second phase entails an investment of ₹1,100 crore to add an additional capacity of 100 tonnes per day, targeted for completion by March 2027. Upon the completion of both phases, the total investment will reach ₹2,300 crore, and the production capacity will rise to 150 tonnes per day.
Deendayal Port Authority holds a 76% stake
The capital contribution ratio for this project between Deendayal Port Authority and Assam Petro-chemicals Limited is 76:24. Deendayal Port Authority’s contribution includes ₹567.32 crore in equity capital, 75 acres of land, desalinated water, and renewable energy in the form of green hydrogen.
Over 3,500 jobs to be created
According to an official statement, this will be one of India’s largest e-methanol production facilities. The project is expected to generate over 3,500 direct and indirect jobs. Additionally, it will boost the entire green energy ecosystem in and around Kandla, encompassing transportation, storage, supply, and other services related to green fuel production.
