India has moved forward with plans to develop domestic green maritime fuel production with the foundation stone laid for the country’s first port-based e-methanol production facility at Deendayal Port Authority (DPA) in Kandla, Gujarat. Gujarat Chief Minister Bhupendra Patel, Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal and Assam Chief Minister Dr Himanta Biswa Sarma jointly laid the foundation stone at the DPA Exhibition Ground in Gandhidham. The facility will produce up to 150 tons of e-methanol per day using renewable power, water and biogenic CO₂. The fuel will primarily support vessels operating along the Asia-Europe International Trade Corridor. According to the government, the plant is expected to produce green methanol at around US$750 per ton, compared with a global cost of approximately US$1,300 per ton.
₹2,300 Crore Project to Be Developed in Two Phases
DPA and Assam Petro-Chemicals Ltd (APCL), based in Namrup, Assam, are jointly developing the project. The facility will be implemented in two scalable phases, with a total investment of ₹2,300 crore. Phase I will add 50 tons per day of production capacity at an investment of ₹1,200 crore. The first phase is targeted for completion by January 2027. Phase II will increase capacity by a further 100 tons per day with an investment of ₹1,100 crore. The second phase is scheduled for completion by March 2027. DPA and APCL will contribute to the project in a 76:24 ratio. DPA’s contribution will include ₹567.32 crore in equity capital, 75 acres of land, desalinated water and renewable energy in the form of green hydrogen.
Project to Support Green Energy Ecosystem
The e-methanol facility is expected to support the development of a wider green-fuel ecosystem around Kandla, including transportation, storage and supply infrastructure. The project will also strengthen India’s efforts to develop domestic sources of cleaner maritime fuels as shipping companies increasingly explore alternatives to conventional fossil fuels.
E-Methanol for International Shipping
The project aligns with India’s long-term target of achieving net-zero emissions by 2070 and its broader focus on energy security and self-reliance. Meanwhile, the government is expanding India’s maritime infrastructure. It plans to add 100 new ships to the merchant fleet over the next five years and aims to position India among the world’s five largest ship-owning nations by 2047. The Kandla project could consequently contribute to the development of a domestic supply chain for low-carbon marine fuels.
Kandla Positioned as Potential Green-Fuel Hub
DPA is also pursuing several other maritime infrastructure projects. These include a ₹1,520 crore DPA-Cochin Shipyard Limited shipbuilding project at Vadinar and a proposed greenfield shipbuilding and repair cluster at Kuchhadi in Porbandar, which has received in-principle approval. Bhupendra Patel said Gujarat’s renewable energy resources and extensive coastline could help supply green fuels to international shipping. He described Kandla as a potential gateway for supplying cleaner fuels to global vessels. Sarbananda Sonowal said the project could help India move beyond its role in global trade and become a supplier of cleaner fuels for international shipping. He also highlighted Kandla’s potential to emerge as a green-fuel hub along the Singapore-Rotterdam shipping route.
Assam-Gujarat Partnership Supports Green Fuel Production
As reported by maritimegateway.com, the project also highlights collaboration between Assam and Gujarat in developing India’s clean-energy infrastructure. Himanta Biswa Sarma said the participation of APCL demonstrates the role that companies from the Northeast can play in India’s emerging clean-energy economy. The partnership brings Assam’s chemical and energy capabilities together with Gujarat’s renewable energy resources, port infrastructure and access to international shipping routes. As a result, the Kandla e-methanol project could provide a foundation for expanding India’s green maritime fuel production and developing an integrated green-fuel supply chain.
