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India Builds ₹2,300-Crore E-Methanol Plant to Decarbonize Global Shipping
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CNBC TV18•28-09-2026, 11:57
India Builds ₹2,300-Crore E-Methanol Plant to Decarbonize Global Shipping
- •India is establishing a ₹2,300-crore e-methanol plant at Kandla, Gujarat, to produce cleaner fuel for ships and become a global green fuel supplier.
- •The project, developed by Deendayal Port Authority and Assam Petro-Chemicals Ltd., will produce 150 tonnes of e-methanol daily, with the first phase costing ₹1,200 crore and completing by January 2027.
- •E-methanol is produced using renewable power, water, and biogenic carbon dioxide (CO2), making it a cleaner alternative to traditional methanol.
- •The fuel will be supplied to ships on the Asia-Europe International Trade Corridor, aiming to significantly reduce carbon emissions in the maritime sector.
- •Shipping, a hard-to-decarbonize sector accounting for 3% of global CO2 emissions, is exploring e-methanol as a lower-carbon alternative to fossil fuels for long-distance journeys.
Key Questions Answered
India is setting up a ₹2,300-crore e-methanol production facility at Kandla in Gujarat. The project is a joint venture between the Deendayal Port Authority and Assam Petro-Chemicals Ltd.
The plant will utilize renewable power, water, and biogenic carbon dioxide (CO2) to manufacture e-methanol. Renewable electricity splits water into green hydrogen, which is subsequently combined with captured CO2 to produce the green fuel.
The facility will be built in two phases to reach a total capacity of 150 tonnes per day. Phase one will produce 50 tonnes daily at a cost of ₹1,200 crore, targeting completion by January 2027, while phase two will add another 100 tonnes daily at ₹1,100 crore, slated for completion by March 2027.
