India’s First Port-Based e-Methanol Plant: A Green Energy Milestone at Kandla

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India has taken a decisive step toward becoming a global exporter of green energy with the foundation stone laid for the country’s first port-based e-methanol plant at Deendayal Port Authority (DPA), Kandla, Gujarat. The project, inaugurated by Gujarat Chief Minister Bhupendra Patel, Union Minister Sarbananda Sonowal, and Assam Chief Minister Dr Himanta Biswa Sarma, marks a turning point in India’s maritime and energy sectors.

e‑Methanol is a synthetic, carbon‑neutral fuel made by combining captured carbon dioxide (CO₂) with green hydrogen produced from renewable electricity. It is designed to replace fossil‑based methanol and serve as a clean energy carrier for shipping, industry, and power generation.

A port‑based e‑methanol plant simply means that the facility for producing e‑methanol is located directly at or near a major port. This location is strategic because it connects production with immediate maritime use and export.

Aspect	Conventional Methanol	e‑Methanol
Source	Natural gas, coal	Captured CO₂ + green hydrogen
Carbon Footprint	High emissions	Carbon‑neutral
Cost (2026 avg.)	~US$300–400/tonne	~US$750–1300/tonne
Main Uses	Chemicals, fuels	Shipping, chemicals, clean energy

A Game-Changer for Green Shipping

The facility will produce 150 tonnes per day of e-methanol, using renewable power, water, and biogenic CO₂. This green fuel will supply vessels on the busy Asia-Europe trade corridor, positioning India as a competitive supplier of clean energy for global shipping. At just US$750 per tonne, India’s production cost undercuts the global average of US$1,300, making it a cost-effective alternative for international markets.

Investment and Job Creation

The ₹2,300 crore project is a joint venture between DPA and Assam Petro-Chemicals Ltd. (APCL), with a capital contribution ratio of 76:24. Phase I, worth ₹1,200 crore, will add 50 tonnes per day capacity by January 2027, while Phase II will expand to 100 tonnes per day by March 2027. Beyond energy, the project promises 3,500 direct and indirect jobs, stimulating the entire green energy value chain around Kandla.

Strategic National Goals

Aligned with Prime Minister Narendra Modi’s Net Zero 2070 vision, the plant supports India’s mission of Atmanirbharta (self-reliance) and Make in India, Make for the World. It also complements the government’s maritime expansion plans, including adding 100 new ships to the merchant fleet and positioning India among the world’s top five ship-owning nations by 2047.

Voices of Leadership

• Bhupendra Patel: “Gujarat’s coast will now power the world’s ships with green energy. This plant makes our renewable strength an export.”
• Sarbananda Sonowal: “Kandla will become a green-fuel hub on the Singapore-Rotterdam route, opening skilled careers for youth.”
• Dr Himanta Biswa Sarma: “Assam, blessed with the Brahmaputra and hydropower, is ready to become a green energy powerhouse.”

Wider Maritime Push

The e-methanol project is part of DPA’s larger port development strategy, which includes:

• A ₹1,520 crore shipbuilding project at Vadinar with Cochin Shipyard Limited
• A proposed greenfield shipbuilding and repair cluster at Porbandar
• India-made containers already being ordered by global shipping giant Maersk

Conclusion

The Kandla e-methanol plant is more than an industrial project—it is a symbol of India’s transition to a green energy exporter. By combining renewable innovation, maritime expansion, and cultural unity, India is charting a course toward sustainable global leadership in shipping and energy.