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India to Build First Port-Based E-Methanol Facility at Kandla for Rs 2,300 Crore
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News18•26-09-2026, 20:15
India to Build First Port-Based E-Methanol Facility at Kandla for Rs 2,300 Crore
- •India is setting up its first port-based e-methanol production facility at Kandla with an investment of Rs 2,300 crore, boosting maritime decarbonisation.
- •The 150-tonne-per-day green fuel plant is a joint venture between Deendayal Port Authority (DPA) and Assam Petro-Chemicals Ltd (APCL).
- •The facility will supply cleaner fuel to international vessels on the busy Asia-Europe trade corridor, positioning India as a global exporter of green fuel.
- •The plant will produce e-methanol at a competitive rate of USD 750 per tonne, significantly lower than the global rate of USD 1,300 per tonne.
- •The project will be completed in two phases, with Phase I (50 TPD) by January 2027 and Phase II (100 TPD) by March 2027, creating over 3,500 jobs.
Key Questions Answered
The e-methanol facility at Kandla involves a total investment of Rs 2,300 crore, implemented in two phases. Phase I will add 50 tonnes per day with an investment of Rs 1,200 crore by January 2027, and Phase II will add 100 tonnes per day with Rs 1,100 crore by March 2027.
The 150-tonne-per-day green fuel plant is a joint venture between the Deendayal Port Authority (DPA) and Assam Petro-Chemicals Ltd. (APCL). The capital contribution ratio between DPA and APCL stands at 76:24.
The plant will produce 150 tonnes per day of e-methanol using renewable power, water, and biogenic CO2. It aims to supply cleaner fuel to international vessels navigating the Asia-Europe International Trade Corridor and position India as an exporter of green fuel.
