India has taken a major step towards becoming a global supplier of green maritime fuel with the foundation stone laid for the country’s first port-based e-methanol production facility at Deendayal Port Authority (DPA) in Kandla, Gujarat.
Gujarat Chief Minister Bhupendra Patel, Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal and Assam Chief Minister Dr Himanta Biswa Sarma laid the foundation stone for the project on Saturday.
The facility will have a total production capacity of 150 tonnes of e-methanol per day and will use renewable power, water and biogenic CO₂ to produce the green fuel. The e-methanol is intended to be supplied to vessels operating on the Asia-Europe International Trade Corridor, one of the world’s busiest maritime trade routes.
The project is expected to strengthen India’s position in the production and supply of green fuel for global shipping. The government said the plant is expected to produce green methanol at around US$750 per tonne, compared with a global rate of about US$1,300 per tonne.
₹2,300 crore investment in two phases
The e-methanol facility is a joint initiative of the Deendayal Port Authority and Assam Petro-Chemicals Ltd (APCL), based in Namrup, Assam. The project will be developed in scalable modules in two phases with a total investment of ₹2,300 crore.
The first phase will add 50 tonnes per day of production capacity at an investment of ₹1,200 crore and is targeted for completion by January 2027.
The second phase will add another 100 tonnes per day at an investment of ₹1,100 crore, with completion targeted for March 2027.
The capital contribution between DPA and APCL will be in a 76:24 ratio. DPA’s contribution includes ₹567.32 crore in equity capital, 75 acres of land, desalinated water and renewable energy in the form of green hydrogen.
The facility is expected to be among India’s largest e-methanol production plants and is projected to create more than 3,500 direct and indirect jobs.
The project is also expected to stimulate a broader green energy ecosystem around Kandla, including transportation, storage, supply and other ancillary activities associated with the production of green molecules.
Green fuel for global shipping
The project is aligned with India’s target of achieving Net Zero emissions by 2070 and the government’s emphasis on energy self-reliance and Make in India, Make for the World.
The initiative comes amid a broader expansion of India’s maritime sector. The government plans to add 100 new ships to India’s merchant fleet over the next five years and aims to make the country one of the world’s top five ship-owning nations by 2047.
The government also noted that global shipping major Maersk has begun ordering containers manufactured in India.
Deendayal Port Authority is simultaneously pursuing other major maritime infrastructure projects. A DPA-Cochin Shipyard Limited shipbuilding project at Vadinar, worth ₹1,520 crore, is under way, while a proposed greenfield shipbuilding and repair cluster at Kuchhadi in Porbandar has received in-principle approval.
Gujarat to emerge as green energy gateway
Gujarat CM Patel said the project would leverage the state’s renewable energy potential and coastline to supply green fuel to international shipping.
“Kutch and the long coastline of Gujarat will now power the world’s ships through Kandla,” Patel said, adding that the facility would turn the state’s renewable energy strength into an export opportunity and make Gujarat’s coast a gateway for India’s green energy to the world.
Sonowal said the project would help India move from being a participant in global trade to becoming a supplier of the clean fuel that powers it.
He said Kandla could develop into a green-fuel hub on the Singapore-Rotterdam route, while describing the facility as a model that could be replicated at other major ports.
Sonowal also highlighted the connection between Assam and Gujarat, noting that APCL is based in Namrup in his Dibrugarh Lok Sabha constituency. He referred to cultural links between the two regions, including traditions associated with Lord Krishna and Rukmini, Usha and Aniruddha of Tezpur and the legacy of 15th-century Assamese saint Srimanta Sankaradeva.
He described the project as an example of Ek Bharat Shreshtha Bharat, bringing together the strengths of Assam and Gujarat.
Assam’s role in India’s green energy transition
Assam CM Sarma said the project demonstrated the role of the Northeast in India’s emerging clean energy economy.
He said Assam’s Brahmaputra river, sunshine and hydropower potential could help the state develop as a green energy hub. The participation of Assam Petro-Chemicals in the Kandla project, he added, would connect the Northeast’s capabilities with India’s wider clean energy ambitions.
“Today, an Assam company carries that strength from Namrup to Kandla, proving that the Northeast will power India’s clean energy future,” Sarma said.
The foundation stone ceremony was held at the DPA Exhibition Ground in Gandhidham.
Among those present were Kutch Lok Sabha MP Vinod Chavda, Gandhidham MLA Maltiben Kishor Maheshwari, Political Secretary to the Assam government Taranga Gogoi, Assam Petro-Chemicals Chairman Bikul Deka, Vice Chairman Hemanta Gogoi and Deendayal Port Authority Chairman Sushil Kumar Singh, besides other government and organisational officials.
