India’s First Major Port-Based e-Methanol Plant Planned at Kandla Port

The project will see a capital investment exceeding ₹1,200 crore and is expected to generate around 3,500 direct and indirect employment opportunities.

In a major boost to India’s clean energy and green shipping ambitions, Assam Petro-Chemicals Ltd (APL) has signed a Memorandum of Understanding (MoU) with the Deendayal Port Authority (DPA) to establish a 150 Tonnes Per Day (TPD) e-Methanol plant at Kandla Port in Gujarat.

The MoU was exchanged at the Chief Minister’s Secretariat in Dibrugarh, Assam, in the presence of Assam Chief Minister Dr Himanta Biswa Sarma and Union Minister of Ports, Shipping & Waterways Sarbananda Sonowal, among other senior dignitaries.

₹1,200 crore investment, 3,500 jobs expected

The project will see a capital investment exceeding ₹1,200 crore and is expected to generate around 3,500 direct and indirect employment opportunities. Congratulating both partners, Union Minister Sarbananda Sonowal said the initiative sends a strong signal of India’s intent to pursue economic growth alongside environmental responsibility.

“This MoU is not merely a commercial partnership, but a strategic national initiative aligned with India’s long-term vision for clean energy, green shipping and sustainable growth,” Sonowal said.

Integrated green marine fuel ecosystem

Under the agreement, DPA will provide pipeline connectivity, storage and fuel-handling infrastructure at Kandla Port, while APL will set up the green methanol production facility within the port premises, creating an integrated value chain for green marine fuels.

E-methanol (electro-methanol) is produced using green hydrogen and captured carbon dioxide, powered by renewable electricity. It is increasingly seen as one of the most viable alternative fuels for shipping, heavy industry and chemical manufacturing, where direct electrification remains difficult.

Advancing India’s maritime decarbonisation

Union Minister Sonowal said the project is a significant milestone in India’s Maritime Decarbonisation Roadmap and supports the Prime Minister’s vision of achieving Net Zero emissions by 2070.

Once commissioned, the facility is expected to position Kandla Port as a major green fuel supply hub on global maritime trade routes, including vessels operating along the Singapore–Rotterdam corridor. Port-based fuel production, he noted, reduces logistics costs, enables seamless integration with shipping demand and supports the 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 global producer and supplier of green marine fuels,” Sonowal said.

Kandla Port as a Green Hydrogen and bunkering hub

Kandla Port is being developed as a Green Bunkering Hub and is among the ports identified as Green Hydrogen Hubs under the National Green Hydrogen Mission, which aims to produce and export 5 million tonnes of green hydrogen over the next 5–6 years.

The initiative aligns with national priorities such as Aatmanirbhar Bharat, Make in India and Make for the World, while reducing dependence on imported fossil fuels.

Assam’s growing role in India’s clean energy journey

Sonowal highlighted that the partnership reflects Assam’s expanding contribution to India’s clean energy transition and strengthens the North East’s role in national value chains.

APL, which operates one of India’s largest methanol facilities at Namrup, is expected to move up the value chain through this project—from conventional methanol to green and e-methanol production.

Green ports central to India’s climate goals

Highlighting that nearly 90% of India’s trade by volume moves through ports, the Union Minister underlined the importance of decarbonising ports and shipping. He noted that the Ministry of Ports, Shipping and Waterways has rolled out initiatives such as Harit Sagar – Green Port Guidelines, promotion of renewable energy at ports and adoption of alternative marine fuels.

Once operational, the project is expected to attract more deep-sea vessels, boost cargo movement and strengthen trade across India’s hinterland—firmly positioning Kandla as a future-ready green port.