Gandhidham, Gujarat: India moved a step closer to developing a domestic green-fuel supply chain for shipping on Saturday as the foundation stone was laid for the country’s first port-based e-methanol production facility at Deendayal Port Authority in Kandla.
The proposed plant, with an eventual production capacity of 150 tonnes per day, will use renewable power, water and biogenic carbon dioxide to manufacture e-methanol, which is being positioned as a lower-emission fuel for commercial shipping.
Gujarat Chief Minister Bhupendra Patel, Union Minister of Ports, Shipping and Waterways Sarbananda Sonowal and Assam Chief Minister Dr Himanta Biswa Sarma laid the foundation stone for the project at the DPA Exhibition Ground in Gandhidham.
The ₹2,300 crore project is being jointly developed by Deendayal Port Authority, or DPA, and Assam Petro-Chemicals Ltd., based in Namrup, Assam.
According to the government, the facility is expected to supply green methanol to vessels operating on the Asia-Europe International Trade Corridor. The project is intended to help India establish itself as a producer and exporter of alternative marine fuels as the global shipping industry works to reduce emissions.
The government said the plant is expected to produce green methanol at about US$750 per tonne, compared with a cited global rate of around US$1,300 per tonne.
Project to be developed in two phases
Construction is planned in two phases using scalable production modules.
Phase I will create capacity of 50 tonnes per day at an investment of ₹1,200 crore and is targeted for completion by January 2027.
Phase II will add another 100 tonnes per day at an estimated cost of ₹1,100 crore, with completion targeted for March 2027. The combined investment will therefore reach ₹2,300 crore.
The capital contribution between DPA and Assam Petro-Chemicals has been set at a 76:24 ratio.
DPA’s contribution includes ₹567.32 crore in equity capital, 75 acres of land, desalinated water and renewable energy in the form of green hydrogen.
The facility is expected to become one of the larger e-methanol production units in India and, according to the government, generate more than 3,500 direct and indirect jobs.
Officials said the project could also support businesses involved in transportation, storage, fuel supply and other parts of the green-energy value chain around Kandla.
Part of wider green shipping push
The project is aligned with India’s target of achieving net-zero emissions by 2070 and forms part of the government’s broader push to expand domestic energy production and maritime manufacturing.
India plans to add 100 new ships to its merchant fleet over the next five years and has set an ambition of becoming one of the world’s top five ship-owning nations by 2047.
Global shipping company Maersk has also begun ordering containers manufactured in India, according to the government.
Deendayal Port Authority is simultaneously pursuing other maritime infrastructure projects. These include the ₹1,520 crore DPA-Cochin Shipyard Limited shipbuilding project at Vadinar and a proposed greenfield shipbuilding and repair cluster at Kuchhadi in Porbandar, which has received in-principle approval.
The result is an increasingly broad maritime strategy: build more ships, manufacture more equipment and, now, produce at least some of the fuel required to keep them moving.
Gujarat sees green-fuel export opportunity
Gujarat Chief Minister Bhupendra Patel said the project could turn the state’s renewable-energy capacity into an export opportunity.
“Under Prime Minister Narendra Modi’s leadership, India is growing faster and greener than ever, and Gujarat is proud to lead that journey,” Bhupendra Patel said. “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’s coast a gateway for India’s green energy to the world.”
Union Minister Sarbananda Sonowal said Kandla could emerge as an important green-fuel hub for international shipping.
“PM Narendra Modi has given India the confidence to lead, not follow,” Sarbananda Sonowal said. “Just as India is now building its own ships and containers, it will soon make the clean fuel that powers global trade. In the years ahead, Kandla will become a green-fuel hub on the Singapore–Rotterdam route, and this plant is a model for every major port in the country. It will open skilled careers for our youth and carry India firmly toward net zero by 2070 and in achieving the goals of VIKSIT BHARAT by 2047.”
Sonowal, who represents Dibrugarh in the Lok Sabha, also highlighted Assam Petro-Chemicals’ base in Namrup, which falls in his constituency.
He referred to historical and cultural links between Assam and Gujarat, including the traditions surrounding Lord Krishna of Dwarka and Rukmini of the Northeast, Usha and Aniruddha of Tezpur, and the works of 15th-century Assamese saint Srimanta Sankaradeva.
Assam company expands role in green-energy project
Assam Chief Minister Dr Himanta Biswa Sarma said the participation of Assam Petro-Chemicals demonstrated the state’s expanding role in India’s clean-energy sector.
“PM Narendra Modi has placed the Northeast at the heart of India’s growth story, and Assam is repaying that trust with enterprise and ambition,” Dr Himanta Biswa Sarma said. “Blessed with the mighty Brahmaputra, abundant sunshine and vast hydropower potential, Assam is ready to become a green energy powerhouse. Today, an Assam company carries that strength from Namrup to Kandla, proving that the Northeast will power India’s clean energy future.”
The government also described the partnership between organisations in Gujarat and Assam as an example of the Centre’s “Ek Bharat Shreshtha Bharat” initiative.
Others present at the ceremony included Kutch Lok Sabha MP Vinod Chavda, Gandhidham MLA Maltiben Kishor Maheshwari, Political Secretary to the Government of Assam Taranga Gogoi, Assam Petro-Chemicals Chairman Bikul Deka, Vice Chairman Hemanta Gogoi and DPA Chairman Sushil Kumar Singh.
As shipping companies worldwide search for commercially viable alternatives to conventional marine fuels, the Kandla project will be closely watched for more than its production capacity. Its larger test will be whether India can convert its renewable-energy ambitions into a competitive fuel business serving international maritime trade.
