India has taken a new step toward cleaner maritime fuel with the foundation stone laid for the country’s first port-based e-methanol production facility at Deendayal Port Authority in Kandla, Gandhidham, Gujarat.
The ₹2,300-crore facility will have a planned production capacity of 150 tonnes of e-methanol per day. The project is being developed jointly by Deendayal Port Authority and Assam Petro-Chemicals Limited and is intended to supply cleaner fuel to international vessels using the Asia-Europe International Trade Corridor.
Editorial Insight
Key Highlights
Important points readers should notice.
Issue/Event: Foundation stone laid for India’s first port-based e-methanol facility.
Location: Deendayal Port Authority, Kandla, Gujarat.
Authority/Organisation: Deendayal Port Authority and Assam Petro-Chemicals Limited.
Action Taken: ₹2,300-crore facility launched for phased development.
Impact: Planned green-fuel supply for international shipping and expansion of India’s clean-energy value chain.
The facility will use renewable power, water and biogenic carbon dioxide to produce e-methanol. The project is being developed in phases, with the first phase adding 50 tonnes per day at an investment of ₹1,200 crore and targeted for completion by January 2027. The second phase will add another 100 tonnes per day, with completion targeted for March 2027.
The government statement associated with the project estimates production costs at around US$750 per tonne, compared with an international reference rate of about US$1,300 per tonne. The project is also expected to generate more than 3,500 direct and indirect jobs across the wider green-fuel value chain around Kandla.
Editorial Analysis
Why This Matters
The Kandla project connects India’s clean-energy ambitions with international maritime fuel demand. Its planned location at a major port could allow e-methanol production, storage and marine-fuel supply to operate within an integrated logistics ecosystem.
