India’s $280m Bet: Kandla Port to Fuel Ships with Green Methanol by 2027
India’s Deendayal Port Authority and Assam Petro-Chemicals invest $280m in a 150-tonne-per-day e-methanol plant at.
India has launched a groundbreaking initiative to establish its first e-methanol production plant at Kandla Port in Gujarat, with an investment of INR 2,300 crore. The facility aims to supply low-carbon fuel to vessels traveling the Asia-Europe shipping route, positioning Kandla as a key green-fueling hub for international maritime trade.
The project is a joint venture between the Deendayal Port Authority (DPA) and Assam Petro-Chemicals Limited. DPA holds a 76% stake, contributing INR 567.32 crore in equity, along with 75 acres of land, renewable energy sources, and desalinated water. Assam Petro-Chemicals owns the remaining 24%.
The plant will produce e-methanol using renewable energy, water, and biogenic carbon dioxide, offering a sustainable alternative to traditional marine fuels. Once operational, it is expected to generate 150 tonnes of e-methanol daily, with production costs estimated at $750 per tonne—significantly lower than the international rate of $1,300 per tonne.
Strategic impact and employment opportunities: Kandla Port
Union Minister for Ports, Shipping, and Waterways, Sarbanda Sonowal, described the project as a milestone in India’s maritime leadership. “This initiative will position the country as a key player in powering global trade with sustainable fuel solutions,” he stated.
The facility is projected to create 3,500 to 4,000 jobs, supporting local employment while advancing India’s decarbonisation goals. The project aligns with the nation’s net-zero emission targets by 2027 and reinforces its push for self-reliance in green energy.
Gujarat’s Chief Minister, Bhupendra Patel, emphasized the state’s strategic role in the venture. “The coastline of Kutch and Gujarat will power international vessels through this facility, establishing Kandla Port as a gateway for green energy exports,” he said.
Phased development and future maritime expansion
The project will be executed in two stages. The first phase, costing INR 1,200 crore, is set for completion by January 2027 and will produce 50 tonnes of e-methanol daily. The second phase, with an investment of INR 1,100 crore, will add another 100 tonnes per day and is expected to be operational by March 2026.
Beyond this facility, India plans to expand its maritime capacity by adding 100 vessels to its merchant fleet in the coming years, aiming to rank among the world’s top five shipowning nations by 2047.
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