Deendayal Port Authority (DPA) announced plans to transform Kandla Port into a green bunkering hub, focusing on renewable fuels to support the maritime sector’s transition toward cleaner energy. A key part of this strategy is a partnership with Assam Petro-Chemicals Limited (APCL) to develop renewable methanol production capacity. Through the collaboration, DPA aims to strengthen India’s role in the emerging green maritime fuel ecosystem while ensuring reliable fuel supply for ships calling at the port.
Agreement to Produce Renewable eMethanol
Under a definitive agreement, DPA plans to invest in the production of 60,000 tons per year of eMethanol, a renewable fuel produced using sustainable energy sources. As part of the arrangement, Assam Petro-Chemicals will provide the required technology and technical expertise. The project will operate under a revenue-sharing model between the partners. The initiative will help supply Renewable Fuel of Non-Biological Origin (RFNBO)-compliant methanol, which is increasingly being considered as a low-carbon alternative marine fuel. By producing green methanol domestically, the project will also support cost-effective bunkering services for vessels at Kandla Port.
Additional Biomethanol Production Facility
In addition to the eMethanol project, Thermax will develop a biomethanol plant with a daily production capacity of 5,000 litres. The facility will further strengthen the supply of sustainable marine fuels at the port. Together, these initiatives form a key part of DPA’s broader strategy to establish Kandla as a major green fuel hub for international shipping.
Expanding Domestic Supply Through SECI Collaboration
To further scale up renewable fuel availability, DPA is also collaborating with the Solar Energy Corporation of India (SECI). The partnership aims to secure additional domestic supply through a planned tender for 5,00,000 tons of green methanol annually within the next two years. The initiative is expected to accelerate India’s transition toward cleaner maritime fuels while reducing dependence on conventional bunker fuels.
Successful Bunkering Trials at Kandla
DPA has already taken important steps toward operational readiness. The port recently conducted a successful shore-to-ship bunkering trial, demonstrating its capability to supply alternative fuels to vessels. DPA plans to conduct additional demonstrations and pilot projects to strengthen its infrastructure and operational expertise in handling green marine fuels.
Supporting India’s Green Maritime Transition
The partnership with Assam Petro-Chemicals plays a critical role in building domestic renewable methanol production capacity. By advancing these projects, DPA aims to position Kandla as a key bunkering destination for ships adopting low-carbon fuels.
DPA Chairman Sushil Kumar Singh said, “Kandla will become one of the potential points where ships will start seeking refueling for their tanks.” As reported by projectstoday.ai, as global shipping increasingly moves toward low-emission fuel alternatives, initiatives such as these will help strengthen India’s presence in the green maritime fuel supply chain.
