Foundation stone laid for India’s first port-based e-methanol plant | Economy & Policy News

The government laid the foundation stone for the country’s first port-based e-methanol plant at Deendayal Port Authority (DPA) in Kandla, Gujarat, on Saturday. The ₹2,300-crore plant is a joint initiative of DPA and Namrup-based Assam Petro-Chemicals Ltd (APCL), and will be installed in phases.

The foundation stone was laid by Union Minister of Ports, Shipping and Waterways Sarbananda Sonowal, Gujarat Chief Minister Bhupendra Patel, and Assam Chief Minister Himanta Biswa Sarma.

The 150-tonne-per-day plant will use renewable power, water and biogenic carbon dioxide (CO2) to produce e-methanol, a green fuel that will enable cleaner shipping, and supply it to vessels plying on the Asia-Europe International Trade Corridor, one of the world’s busiest trade routes.

“The plant will position India as a global leader in the production and supply of green fuel, and will produce green methanol at a much more competitive rate compared to other global producers, just $750 per tonne, against a global rate of $1,300 per tonne,” the Ministry of Ports, Shipping and Waterways said.

The ministry added that Phase I of the project will add 50 tonnes per day of capacity at an investment of ₹1,200 crore, targeted for completion by January 2027. Phase II will add a further 100 tonnes per day at an investment of ₹1,100 crore, targeted for March 2027, taking the total investment to ₹2,300 crore.

The capital contribution between the two partners stands at a ratio of 76:24 between DPA and APCL. DPA’s contribution to the project includes equity capital of ₹567.32 crore, 75 acres of land, desalinated water and renewable energy in the form of green hydrogen.

The ministry said it will be among the largest e-methanol production facilities in India and will create more than 3,500 direct and indirect jobs. It will also stimulate the green energy value chain in and around Kandla, including transportation, storage, supply and other associated ancillaries.

The government plans to add 100 new ships to the country’s merchant fleet over the next five years and aims to make India one of the world’s top five ship-owning nations by 2047. Global shipping major Maersk has also begun ordering containers manufactured in India.

As part of Deendayal Port Authority’s wider mega port push, the DPA-Cochin Shipyard Limited (CSL) shipbuilding project at Vadinar, worth ₹1,520 crore, is also underway, alongside a proposed greenfield shipbuilding and repair cluster at Kuchhadi, Porbandar, which has received in-principle approval.