India Lays Foundation for First Port-Based E-Methanol Plant at Deendayal Port, Kandla

Key facts

• India's first port-based e-methanol production facility was launched with a foundation stone ceremony at Deendayal Port Authority (DPA) in Kandla, led by Gujarat Chief Minister Bhupendra Patel, Union Minister Sarbananda Sonowal and Assam Chief Minister Himanta Biswa Sarma.
• The Rs 2,300 crore plant is a joint initiative of Deendayal Port Authority and Namrup-based Assam Petro-Chemicals Ltd (APCL), with capital contribution in a 76:24 ratio between DPA and APCL.
• The plant will have a capacity of 150 tonnes per day, using renewable power, water and biogenic CO2 to produce e-methanol for ships on the Asia-Europe International Trade Corridor.
• Phase I will add 50 tonnes per day capacity at Rs 1,200 crore, targeted for completion by January 2027, and Phase II will add 100 tonnes per day at Rs 1,100 crore, targeted for March 2027.
• The e-methanol is expected to be produced at about US$750 per tonne against a global rate of US$1,300 per tonne.
• DPA's contribution includes equity capital of Rs 567.32 crore, 75 acres of land, desalinated water and renewable energy in the form of green hydrogen.
• The facility is expected to create more than 3,500 direct and indirect jobs and stimulate the green energy value chain around Kandla.
• The project supports India's Net Zero emissions target by 2070 and the government plans to add 100 new ships to the merchant fleet over five years, aiming to make India a top five ship-owning nation by 2047.