The foundation stone has been laid at Deendayal Port Authority, Kandla, Gujarat, for India’s first port-based e-methanol production facility. 

More About the News

• The ₹2,300-crore project is a joint initiative of Deendayal Port Authority and Namrup-based Assam Petro-Chemicals Limited.
• The plant will produce 150 tonnes of e-methanol per day using renewable energy, water and biogenic carbon dioxide. 
• The fuel will be supplied to ships operating along major international trade routes i.e the Asia-Europe International Trade Corridor.

Advantages & Applications of e-methanol (or electro-methanol)

• It can be used without a change in infrastructure; it is stable and can be stored at room temperature and ambient pressure; it is versatile and can be used as other fuels.
• Apart from the shipping industry, its derivatives gasoline and kerosene provide solutions for road and air transport.

How Will the Plant Work?

E-methanol is a low-carbon fuel produced by combining green hydrogen with captured carbon dioxide.

• The project will use renewable electricity to produce green hydrogen.
• Biogenic carbon dioxide will be used as the carbon source for producing methanol.
• The resulting fuel can help reduce dependence on conventional fossil fuels in shipping.
• The plant is expected to create more than 3,500 direct and indirect jobs and stimulate activities such as green-fuel transportation, storage and supply.

Project Structure

The facility will be developed in two phases:

• Phase I will add 50 tonnes per day of capacity with an investment of ₹1,200 crore by January 2027.
• Phase II will add another 100 tonnes per day with an investment of ₹1,100 crore by March 2027.
• The ownership contribution between Deendayal Port Authority and Assam Petro-Chemicals Limited is planned at 76:24.
  • DPA will contribute equity capital of ₹567.32 crore, 75 acres of land, desalinated water, and renewable energy in the form of green hydrogen. 

The project also creates an important Assam–Gujarat industrial linkage, with Assam Petro-Chemicals Limited bringing its expertise and production capabilities from Namrup to a major western Indian port.

Why Is It Important?

• It shall be amongst the largest e-methanol production facilities in India and shall create more than 3,500 direct and indirect jobs. 
• It shall stimulate the complete green energy value chain in and around Kandla, including transportation, storage, supply and other associated ancillaries involved in production of green molecules.
• Apart from it, the project connects three major objectives:
  • Maritime decarbonisation can reduce the shipping sector’s dependence on fossil fuels.
  • Green-fuel production can create a new export-oriented clean-energy industry.
  • Port-based production reduces the logistical distance between fuel production, storage and ships.

Exam Hook: Key Takeaway

India’s first port-based e-methanol facility links Assam’s industrial capabilities with Gujarat’s port infrastructure and supports India’s transition towards green shipping and clean-energy exports.

One-line wrap: From Namrup to Kandla, the e-methanol project demonstrates how regional industrial strengths can be connected to India’s emerging green-energy economy.