India's First Port-Based e-Methanol Facility at Kandla
India has laid the foundation stone for its first port-based e-methanol production facility at Deendayal Port Authority (DPA), Kandla, Gujarat, marking a major step towards supplying green maritime fuel to global shipping.
Key Facts
- Project cost: ₹2,300 crore
- Partners: Deendayal Port Authority (DPA) and Assam Petro-Chemicals Ltd. (APCL)
- Capital contribution ratio: 76:24
- Total capacity: 150 tonnes of e-methanol per day
- Feedstock: Renewable power, water and biogenic CO₂
Phased Development
- Phase I: 50 tonnes/day capacity, ₹1,200 crore, by January 2027
- Phase II: Additional 100 tonnes/day, ₹1,100 crore, by March 2027
What is e-Methanol?
E-Methanol is a synthetic fuel produced by combining green hydrogen with captured CO₂ using renewable energy, making it a cleaner alternative to conventional fossil-based methanol.
Global Shipping Linkage
- E-methanol will be supplied to vessels operating on the Asia-Europe International Trade Corridor
- Kandla is envisioned as a green-fuel hub on the Singapore-Rotterdam route
Cost Competitiveness & Employment
- Expected production cost: ~US$750 per tonne vs global rate of ~US$1,300 per tonne
- Expected to generate 3,500+ direct and indirect jobs
Wider Maritime Push
The project is part of India's broader maritime expansion, which includes:
- Adding 100 ships to the merchant fleet over five years
- Becoming a top-five ship-owning nation by 2047
- Developing major shipbuilding and repair infrastructure
Significance
- Supports India's Net Zero 2070 goal and energy self-reliance (Atmanirbhar Bharat)
- Aligns with Make in India, Make for the World initiative
- Strengthens India's position as an exporter of green maritime fuel
- Promotes a green-energy ecosystem around Kandla
- Complements initiatives like Sagarmala for port-led development