The foundation stone has been laid for a 150 tonnes per day (TPD) green e-methanol plant at Kandla Port in Gujarat. The project is being developed by Assam Petrochemicals Limited (APL) in partnership with the Deendayal Port Authority (DPA).
The facility is expected to become one of India’s major green e-methanol projects. It will also support the country’s efforts to develop cleaner fuels for the shipping and industrial sectors.
₹2,300 Crore Project at Kandla Port
The green e-methanol facility is being developed at the Deendayal Port Authority in Kandla. The project involves an investment of around ₹2,300 crore, according to the latest reports.
APL and DPA are working together to establish the facility. While the port authority will provide the required land and port infrastructure, APL will develop and operate the production facility.
Therefore, the project combines Assam’s petrochemical expertise with Gujarat’s strategic port infrastructure.
Plant to Produce 150 Tonnes of E-Methanol Daily
The proposed facility will have a production capacity of 150 tonnes of green e-methanol every day.
Green e-methanol is produced using green hydrogen and captured carbon dioxide. Unlike conventional methanol production based on fossil fuels, the process can significantly reduce the carbon intensity of the fuel when renewable electricity powers the hydrogen production.
As a result, green e-methanol is attracting growing interest as an alternative fuel for industries and shipping.
Focus on Green Shipping
One of the key applications of the project will be the maritime sector.
Kandla is strategically located on major international shipping routes. Consequently, the new facility could help supply lower-carbon fuel to ships operating through the region.
Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal has described the project as an important step in India’s maritime decarbonisation efforts. The facility is also expected to support the development of green shipping along international trade routes, including the Singapore–Rotterdam corridor.
Assam Petrochemicals Expands Beyond Assam
The project also marks an expansion of Assam Petrochemicals’ operations beyond the state.
APL currently produces methanol in Assam using natural gas. However, the Gujarat project will use renewable energy-based production methods.
According to Assam Chief Minister Himanta Biswa Sarma, the Kandla project will allow APL to enter the growing green-fuel market. Moreover, it could help the company develop expertise in producing cleaner fuels for new industrial applications.
Kandla Could Become a Green Fuel Hub
The project could also strengthen Kandla’s position as a green-energy hub.
The port already has extensive maritime infrastructure and connectivity with domestic and international markets. Therefore, producing green fuel close to the port could simplify storage and distribution for shipping customers.
In addition, the project could support the wider development of renewable-energy-based industries around the port. This could create new opportunities in green hydrogen, clean fuels and related infrastructure.
Project Expected to Create Jobs
The green e-methanol project is also expected to generate employment during its development and operation.
Earlier project announcements estimated around 3,500 direct and indirect employment opportunities from the broader development. The project could therefore create opportunities across construction, operations, logistics and associated services.
Furthermore, the facility could help build technical expertise in green-fuel production. This could support the development of a wider clean-energy ecosystem around Kandla.
Green E-Methanol Gains Importance
Green e-methanol is gaining attention as countries and industries look for alternatives to conventional fossil fuels.
The shipping industry is one of the major potential markets. At the same time, e-methanol can have applications in heavy industry and chemical manufacturing, particularly where direct electrification remains difficult.
Therefore, the Kandla project comes at a time when demand for low-carbon fuels is expected to increase.
Step Towards India’s Clean Energy Goals
The foundation of the Kandla plant marks another step in India’s transition towards cleaner fuels.
For Gujarat, the project adds another green-energy investment to its expanding industrial and port infrastructure. Meanwhile, for Assam Petrochemicals, it provides an opportunity to expand into the emerging green-fuel economy.
Once operational, the 150 TPD green e-methanol plant could strengthen Kandla’s role in India’s clean maritime-fuel network and support the country’s broader efforts to reduce emissions from shipping and industry.