India has laid the foundation stone for its first port-based e-methanol production plant, a ₹23bn ($239.8m) project at Deendayal Port Authority in Kandla, Gujarat, according to the Ministry of Ports, Shipping and Waterways.
The 150-tonne-per-day facility is being developed jointly by Deendayal Port Authority (DPA) and Assam Petro-Chemicals Ltd (APCL), based in Namrup, Assam.
The plant will use renewable power, water and biogenic carbon dioxide to produce e-methanol for ships operating on the Asia-Europe trade corridor.
Development will take place in two phases. The first will add 50 tonnes per day of capacity at an investment of ₹12bn ($125.1m) and is targeted for completion by January 2027.
The second phase will cost ₹11bn ($114.7m), add a further 100 tonnes per day and is scheduled for completion by March 2027.
The capital contribution between DPA and APCL will be split 76:24. DPA's contribution includes ₹5.6732bn ($59.2m) in equity capital, 75 acres of land, desalinated water and green hydrogen.
The project is expected to create more than 3,500 direct and indirect jobs and support transport, storage and fuel-supply infrastructure around Kandla.
The plant is expected to produce green methanol at about $750 per tonne, compared with a global rate of about $1,300 per tonne.
The project follows an agreement signed by APCL and DPA in January 2026 to establish a 150-tonne-per-day e-methanol plant at Kandla.
DPA was to provide port-side infrastructure including pipeline connectivity, storage and fuel-handling facilities, while APCL was to establish the production facility.
DPA is the statutory authority responsible for the port of Kandla and associated facilities in Gujarat. It handled 150.16m tonnes of cargo in the 2024-25 financial year.
APCL was incorporated in 1971 and is a Government of Assam undertaking producing methanol and formalin.