THEBUSINESSBYTES BUREAU

GANDHIDHAM (GUJARAT), SEPTEMBER 26, 2026

India is set to get its first port-based e-methanol production facility at Kandla, with a ₹2,300-crore project aimed at producing and supplying green fuel to ships operating on major international trade routes.

Gujarat Chief Minister Bhupendra Patel, Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal and Assam Chief Minister Himanta Biswa Sarma on Saturday laid the foundation stone for the facility at the Deendayal Port Authority (DPA) in Kandla.

The 150-tonne-per-day plant will use renewable power, water and biogenic carbon dioxide to produce e-methanol, a low-carbon fuel that can be used in the maritime sector. The facility is expected to supply green fuel to vessels operating along the Asia-Europe International Trade Corridor.

The project, a joint initiative of DPA and Namrup-based Assam Petro-Chemicals Ltd (APCL), is being developed in two phases. The first phase, involving 50 tonnes per day of capacity at an investment of ₹1,200 crore, is targeted for completion by January 2027. The second phase will add another 100 tonnes per day at an investment of ₹1,100 crore, with completion targeted for March 2027.

The project is expected to create more than 3,500 direct and indirect jobs and catalyse a wider green-energy ecosystem around Kandla, including transportation, storage, fuel supply and ancillary services.

DPA will hold a 76 per cent stake in the project, while APCL will contribute the remaining 24 per cent. DPA's contribution includes ₹567.32 crore in equity, 75 acres of land, desalinated water and renewable energy in the form of green hydrogen.

According to the project details, the plant is expected to produce e-methanol at around USD 750 per tonne, compared with a cited global production rate of about USD 1,300 per tonne.

The facility is being positioned as a key component of India's efforts to expand its green-fuel production capacity and support the country's target of achieving net-zero emissions by 2070.

"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 a gateway for India's green energy to the world," Patel said.

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," he said, adding that Kandla could emerge as a green-fuel hub on the Singapore-Rotterdam route.

Sarma said the project demonstrated the role of Assam-based enterprises in India's clean-energy transition.

"Today, an Assam company carries that strength from Namrup to Kandla, proving that the Northeast will power India's clean energy future," he said.

The project also brings together two states as part of the government's broader emphasis on integrating regional strengths into national development.

The green-fuel initiative comes amid an expansion of India's maritime ambitions. The government plans to add 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.

DPA is also pursuing other maritime infrastructure projects, including a ₹1,520-crore shipbuilding project with Cochin Shipyard Ltd at Vadinar and a proposed greenfield shipbuilding and repair cluster at Kuchhadi in Porbandar, which has received in-principle approval.

The Kandla e-methanol project is expected to create demand for renewable power and other green inputs while building a supply chain for low-carbon marine fuel, strengthening the port's role in India's emerging green-energy export ecosystem.

Among those present at the foundation-stone ceremony were 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.