Kandla e-Methanol Plant: India begins construction on first port-based green fuel facility

India has commenced construction on its first port-based e-methanol production facility at the Deendayal Port Authority (DPA) in Kandla, Gujarat. The project is a joint initiative between the DPA and Assam Petro-Chemicals Ltd. (APCL).

The 150-tonne-per-day plant aims to produce green fuel using renewable power, water, and biogenic CO2 to support cleaner shipping along the Asia-Europe International Trade Corridor. The facility is expected to produce e-methanol at a competitive rate of approximately US$750 per tonne, compared to the global average of US$1,300 per tonne.

The total investment for the project is Rs 2,300 crore, which is expected to create 3,500 jobs. The development will be implemented in two phases: Phase I, costing Rs 1,200 crore, aims to add 50 tonnes of capacity by January 2027, while Phase II, costing Rs 1,100 crore, will add another 100 tonnes of capacity by March 2027.