Why in the News?

Foundation stone laid on 26 September 2026 for India’s first port-based e-methanol plant at Deendayal Port Authority (DPA), Kandla, Gujarat.
The facility will produce green fuel for ships using renewable power, water and biogenic CO₂, supporting India’s Net Zero 2070 goal.

Key Highlights

Location: Kandla, Gandhidham, Gujarat.
Capacity: 150 tonnes per day of e-methanol.
Total investment: ₹2,300 crore.
Phase I: 50 tonnes/day, ₹1,200 crore, targeted for January 2027.
Phase II: Additional 100 tonnes/day, ₹1,100 crore, targeted for March 2027.
Project partners: Deendayal Port Authority (DPA) and Assam Petro-Chemicals Ltd. (APCL).
Capital contribution: DPA:APCL = 76:24.
Expected to create more than 3,500 direct and indirect jobs.
Green methanol production cost stated as US$750/tonne, compared with global rate of US$1,300/tonne.
Fuel will be supplied to vessels operating on the Asia-Europe International Trade Corridor.
Supports Net Zero 2070, Atmanirbharta, Make in India and Make for the World.

E-methanol is a green fuel produced using:
- Renewable power
- Water
- Biogenic CO₂
The project aims to use e-methanol as a cleaner marine fuel.
The facility will help develop a green energy value chain around Kandla, including:
- Transportation
- Storage
- Fuel supply
- Associated green molecule infrastructure

Deendayal Port Authority (DPA):
- Provides equity capital of ₹567.32 crore.
- Provides 75 acres of land.
- Provides desalinated water.
- Provides renewable energy in the form of green hydrogen.
Assam Petro-Chemicals Ltd. (APCL):
- Based in Namrup, Assam.
- Joint partner in the Kandla e-methanol project.

Government plans to add 100 new ships to India’s merchant fleet over the next 5 years.
Target: Make India one of the top five ship-owning nations by 2047.
DPA-Cochin Shipyard Limited (CSL) shipbuilding project at Vadinar:
- Value: ₹1,520 crore.
Proposed greenfield shipbuilding and repair cluster at Kuchhadi, Porbandar has received in-principle approval.

First port-based e-methanol plant in India: Kandla, Gujarat.
Port: Deendayal Port Authority.
Capacity: 150 tonnes/day.
Investment: ₹2,300 crore.
Partners: DPA + Assam Petro-Chemicals Ltd.
Capital contribution ratio: 76:24.
Feedstocks/inputs: Renewable power, water and biogenic CO₂.
Primary application: Green fuel for ships operating on the Asia-Europe International Trade Corridor.

E-methanol ≠ conventional methanol: The article specifically describes production using renewable power, water and biogenic CO₂.
Kandla ≠ Namrup: The production facility is at Kandla, Gujarat, while the partner Assam Petro-Chemicals Ltd. is based at Namrup, Assam.
150 tonnes/day is the total capacity: Phase I contributes 50 tonnes/day, while Phase II adds 100 tonnes/day.