Assam-Gujarat partnership to power India's first port-based e-methanol plant at Kandla

India on Saturday, September 26 took a step towards developing a domestic green-fuel ecosystem for the maritime sector with the foundation stone being laid for the country’s first port-based e-methanol production facility at Deendayal Port Authority (DPA) in Kandla.

Gujarat Chief Minister Bhupendra Patel, Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal and Assam Chief Minister Himanta Biswa Sarma laid the foundation stone for the project, which is being jointly developed by DPA and Namrup-based Assam Petro-Chemicals Ltd (APCL).

The plant will have a total production capacity of 150 tonnes of e-methanol per day and will use renewable power, water and biogenic carbon dioxide to produce the green fuel. The e-methanol is intended to be supplied to vessels operating on the Asia-Europe trade corridor.

The project entails an investment of ₹2,300 crore and is expected to generate more than 3,500 direct and indirect jobs. The facility will be developed in two phases, with the first phase adding 50 tonnes per day at an investment of ₹1,200 crore and targeted for completion by January 2027.

The second phase, involving an additional 100 tonnes per day of capacity, will require an investment of ₹1,100 crore and is targeted for completion by March 2027.

DPA and APCL will hold a 76:24 capital contribution ratio in the project. DPA's contribution includes ₹567.32 crore in equity capital, 75 acres of land, desalinated water and renewable energy in the form of green hydrogen.

The project is expected to support the development of a wider green-energy value chain around Kandla, including transportation, storage, supply and other ancillary activities linked to the production and distribution of green fuels.

According to the project details, the e-methanol is expected to be produced at an estimated cost of around US$750 per tonne, compared with a global rate of about US$1,300 per tonne.

The initiative is aligned with India's target of achieving net-zero emissions by 2070 and the government's focus on energy self-reliance and domestic manufacturing under its Atmanirbhar Bharat and Make in India programmes.

Speaking at the event, Gujarat Chief Minister Bhupendra Patel said the project would strengthen the state's role in the country's green-energy transition.

"Gujarat is proud to lead that journey. Kutch and the long coastline of Gujarat will now power the world's ships through Kandla. This plant turns our renewable strength into an export and makes Gujarat's coast a gateway for India's green energy to the world," Patel said.

Union Minister Sarbananda Sonowal said the project would help strengthen India's position in the global maritime and clean-energy sectors.

"Just as India is now building its own ships and containers, it will soon make the clean fuel that powers global trade. In the years ahead, Kandla will become a green-fuel hub on the Singapore–Rotterdam route, and this plant a model for every major port in the country," Sonowal said.

Assam Chief Minister Himanta Biswa Sarma highlighted the role of APCL, which is based in Namrup in Assam's Dibrugarh district.

"Blessed with the mighty Brahmaputra, abundant sunshine and vast hydropower potential, Assam is ready to become a green energy powerhouse. Today, an Assam company carries that strength from Namrup to Kandla, proving that the Northeast will power India's clean energy future," Sarma said.

The project also brings together public-sector infrastructure and industrial capabilities from Assam and Gujarat and was described at the event as an example of the government's Ek Bharat Shreshtha Bharat approach.

The e-methanol facility comes amid a broader expansion of India's maritime infrastructure and shipbuilding capacity. The government has set a target of adding 100 ships to the country's merchant fleet over the next five years and aims to make India one of the world's five largest ship-owning nations by 2047.

Other projects associated with the expansion of maritime infrastructure 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.

The foundation stone ceremony was held at the DPA Exhibition Ground in Gandhidham. Kutch Lok Sabha MP Vinod Chavda, Gandhidham MLA Maltiben Kishor Maheshwari, Assam government's Political Secretary Taranga Gogoi, APCL Chairman Bikul Deka, APCL Vice Chairman Hemanta Gogoi and DPA Chairman Sushil Kumar Singh were among those present.