Plan for 150 TPD e-methanol plant in Kandla to boost green shipping fuel in India
A plan is underway to set up a 150 TPD (tonnes per day) e-methanol plant at Deendayal Port in Kandla, Gujarat, to be jointly developed by DPA and APCL. This project, valued at approximately ₹2,300 crore, will be completed in two phases, with a proposed investment split of 76:24 between DPA and APCL. E-methanol is a low-carbon fuel produced from green hydrogen and CO₂; it is particularly suitable for use in green shipping and international maritime transport. Aligned with the National Green Hydrogen Mission, this project will help develop an integrated value chain spanning renewable energy → green hydrogen → e-methanol → green shipping.
A port-based plant with a production capacity of 150 tonnes per day (TPD) of e-methanol is planned for Deendayal Port in Kandla, Gujarat. The project is proposed as a collaboration between Deendayal Port Authority (DPA) and Assam Petro-chemicals Limited (APCL). Its objective is to increase the availability of low-carbon and alternative fuels within the maritime sector.
Project Investment and Phased Development:
The project, estimated at ₹2,300 crore, will be developed in two phases. A production capacity of 50 TPD will be established in the first phase, followed by an additional 100 TPD capacity in the second phase. The proposed investment ratio between DPA and APCL is 76:24. DPA will provide port-related infrastructure, pipeline connectivity, and fuel management facilities, while APCL will develop the production unit.
Significance of E-Methanol:
E-methanol (Electro-methanol) is primarily produced by combining green hydrogen and carbon dioxide, utilizing renewable electricity in the process. It serves as a potential low-carbon fuel for sectors where direct electrification is challenging. Its use—particularly in international shipping, heavy transport, and the chemical industry—can help reduce reliance on fossil fuels.
Green Shipping and Methanol Bunkering:
Methanol bunkering infrastructure is already being developed at Deendayal Port. A demonstration of methanol fuel transfer to a ship was conducted at the port in April 2026. Such systems will facilitate fuel supply to methanol-based or dual-fuel vessels in the future. Kandla’s strategic location on the west coast positions it as a crucial node for the Asia-Europe maritime trade route.
Linkage with the National Green Hydrogen Mission:
Deendayal Port is also being viewed as a potential green hydrogen hub under the National Green Hydrogen Mission. The port complex's capacity for green hydrogen production, combined with land availability for green hydrogen and green ammonia projects, lays the groundwork for downstream green-fuel initiatives like e-methanol. This enables the development of an integrated value chain: Renewable Energy → Green Hydrogen → E-methanol → Green Shipping.
Broader Significance for UPSC:
This project is significant for understanding the interlinkages between energy transition, green hydrogen, the decarbonization of maritime transport, and the Blue Economy. In the UPSC context, it can be linked to GS Paper-3 topics such as environment, energy, infrastructure, and sustainable development. Furthermore, the combination of Assam’s petrochemical expertise and Gujarat’s port infrastructure exemplifies cooperative federalism, regional economic integration, and green growth. For the widespread use of e-methanol, it is also essential to address challenges such as the availability of green electricity, a sustainable source of CO₂, production costs, bunkering infrastructure, and global marine fuel standards.
