Assam Petro inks pact with Deendayal Port for e-methanol unit in Gujarat

Sonowal said the partnership represents a strategic national initiative aligned with Indias long-term vision for clean energy, green shipping and sustainable economic growth. The Union minister said port-based fuel production offers multiple advantages, including reduced logistics costs, seamless integration with shipping demand and development of green bunkering infrastructure.

Public sector undertaking Assam Petro-Chemicals Ltd (APL) on Thursday joined hands with the Deendayal Port Authority (DPA) to set up a 150 tonnes per day (TPD) e-methanol plant at Kandla Port in Gujarat at an investment of over Rs 1,200 crore. An agreement was signed in the presence of Assam Chief Minister Himanta Biswa Sarma, Union Minister of Ports, Shipping and Waterways Sarbananda Sonowal and senior officials at the CM's Secretariat in Dibrugarh. More than Rs 1,200 crore will be invested as capital for the plant, while around 3,500 direct and indirect employment opportunities will arise as a result of the project, officials said. ''This MoU is a clear statement of intent that India will pursue economic growth without compromising environmental responsibility,'' Sonowal said. Under the pact, DPA will provide pipeline connectivity, storage and fuel-handling infrastructure at the port, while APL will establish the green methanol production facility within the port area, creating an integrated value chain for green marine fuels. E-methanol or electro-methanol is produced using green hydrogen and captured carbon dioxide powered by renewable electricity. It is considered one of the most viable alternative fuels for shipping, heavy industry and chemical manufacturing -- sectors where direct electrification remains challenging, the officials said. Sonowal said the partnership represents a strategic national initiative aligned with India's long-term vision for clean energy, green shipping and sustainable economic growth. ''This project marks a major step in India's maritime decarbonisation roadmap, allowing us to cruise towards PM Narendra Modi's vision of Net Zero by 2070,'' he said. Once commissioned, the facility is expected to enable Kandla Port to emerge as a major green fuel supply point along international maritime trade routes, including vessels operating on the Singapore-Rotterdam corridor. The Union minister said port-based fuel production offers multiple advantages, including reduced logistics costs, seamless integration with shipping demand and development of green bunkering infrastructure. ''As a marine fuel, e-methanol meets international emissions regulations and enables cleaner long-distance shipping. By promoting e-methanol, India is positioning itself not only as a consumer but also as a producer and supplier of green marine fuels,'' he said. Sonowal further said that the collaboration reflects Assam's expanding contribution to India's clean energy journey, and demonstrates how the northeastern region is becoming an integral partner in national value chains. ''It will strengthen Assam's role in India's energy transition, support the methanol economy initiative and help reduce dependence on imported fossil fuels,'' he said. APL, based in Assam, operates one of the country's largest methanol facilities at Namrup in Dibrugarh, and has recently expanded its production capacity. The partnership with DPA, Kandla is expected to enable the company to move up the value chain from conventional methanol to green and e-methanol production.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)