Foundation stone laid for India’s 1st e-methanol plant in Gandhidham

India’s first port-based e-methanol plant is set to come up at Deendayal Port Authority (DPA) in Kandla, Gujarat, with a Rs2,300-crore project aimed at supplying cleaner fuel to ships and supporting the country’s green shipping ambitions.The foundation stone for the 150-tonne-per-day (TPD) e-methanol plant was laid on Saturday by Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal, Gujarat Chief Minister Bhupendra Patel and Assam Chief Minister Himanta Biswa Sarma.
The project is a joint initiative of DPA and Assam Petro-Chemicals Ltd (APCL) and will be developed in two phases.The plant will use renewable power, water and biogenic carbon dioxide (CO₂) to produce e-methanol, a low-carbon marine fuel that can help reduce emissions from shipping. The fuel will be supplied to vessels operating along the Asia-Europe International Trade Corridor, one of the world’s busiest maritime trade routes.
Rs2,300-Crore Project to Come Up in Two Phases
According to the Ministry of Ports, Shipping and Waterways, Phase I will add 50 TPD of production capacity at an investment of Rs1,200 crore and is targeted for completion by January 2027.Phase II, involving an additional 100 TPD capacity, will require Rs1,100 crore and is targeted for completion by March 2027. Once both phases are operational, the plant will have a total production capacity of 150 TPD.The ministry said the plant is expected to produce e-methanol at around $750 per tonne, compared with a global rate of about $1,300 per tonne.DPA will hold a 76% share in the project, while APCL will contribute the remaining 24%. DPA’s contribution includes Rs567.32 crore in equity, 75 acres of land, desalinated water and renewable energy in the form of green hydrogen.
The project will also be accompanied by bunkering facilities at Kandla, allowing ships to access the cleaner marine fuel directly at the port.Gujarat Chief Minister Bhupendra Patel said the project would support India’s green energy transition and green shipping goals, particularly as a significant share of the country’s trade moves through maritime routes.The plant is expected to help reduce dependence on imported fossil fuels while supporting efforts to lower carbon emissions from maritime transport.

#WATCH | Gujarat Chief Minister Bhupendra Patel, Union Minister Sarbananda Sonowal and Assam's Chief Minister Dr Himanta Biswa Sarma laid the foundation stone for the country's first port-based e-methanol plant at Deendayal Port Authority (DPA) in Kandla, Gandhidham, Gujarat… pic.twitter.com/2aW9Lb1gp9

— ANI (@ANI) September 26, 2026

Meanwhile, the government said the project will create more than 3,500 direct and indirect employment opportunities and support the development of a wider green energy ecosystem around Kandla.The ecosystem is expected to include activities related to transportation, storage, fuel supply and associated ancillary services.
Assam Chief Minister Himanta Biswa Sarma described the project as a reflection of the growing industrial partnership between Gujarat and Assam and said its capacity could be expanded in the future to meet the fuel and energy needs of domestic and international shipping.Sonowal said the project would strengthen economic and industrial ties between the two states while creating new employment opportunities.

#WATCH | Kachchh, Gujarat: At the bhoomi pujan of the 150 TPD e-Methanol Plant of Assam Petro-Chemicals at Kandla, Union Minister Sarbananda Sonowal says, “Green methanol and green energy will be produced here. The Assam and Gujarat governments have resolved to collaborate on… pic.twitter.com/gF0FhX1vLu

— ANI (@ANI) September 26, 2026

APCL Chairman Bikul Deka said the project would combine the company’s technical expertise with Gujarat’s port infrastructure. He added that domestic production of green fuel could also strengthen India’s energy security during disruptions in global supply chains.
Push for Green Shipping and Shipbuilding
The e-methanol project forms part of the government’s broader push to expand India’s maritime and green-fuel infrastructure.The government plans to add 100 new ships to India’s merchant fleet over the next five years and aims to make the country one of the world’s top five ship-owning nations by 2047.DPA is also advancing other major maritime projects. A Rs1,520-crore DPA-Cochin Shipyard Limited shipbuilding project at Vadinar is underway, while a proposed greenfield shipbuilding and repair cluster at Kuchhadi in Porbandar has received in-principle approval.

(State Correspondent)