27 September 2026

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Port Based e Methanol Production Facility Kandla Gujarat

Why in news

  • Foundation stone laid for India's first port-based e-methanol plant at Deendayal Port Authority (DPA) in Kandla, Gujarat.

Key terms

e-Methanol

Synthetic liquid fuel produced by combining green hydrogen made from water electrolysis with captured biogenic carbon dioxide.

Biogenic CO2

Carbon dioxide emitted from organic matter or biomass combustion rather than fossil fuels.

Green Bunkering

The process of supplying eco-friendly low-carbon fuels to ocean-going commercial ships at maritime ports.

Asia-Europe Trade Corridor

Major maritime trade route connecting East Asian ports with Western Europe via the Indian Ocean and Suez Canal.

What is the Kandla e-Methanol Facility?

  • A ₹2,300 crore joint venture between Deendayal Port Authority (76% equity) and Assam Petro-Chemicals Ltd (24% equity).
  • Designed to produce 150 tonnes per day (TPD) of green e-methanol using renewable energy, desalinated water, and biogenic carbon dioxide.

Key operational features and phases

  • Phase I adds 50 TPD capacity with ₹1,200 crore investment by January 2027; Phase II adds 100 TPD with ₹1,100 crore by March 2027.
  • Aims to produce e-methanol at $750 per tonne compared to global benchmarks of around $1,300 per tonne.
  • Targeted at supplying cleaner green fuel to commercial ocean vessels plying on the Asia-Europe International Trade Corridor.

Why it matters

  • Supports International Maritime Organization (IMO) decarbonisation targets by replacing heavy fuel oil with net-zero synthetic methanol.
  • Positions India as a competitive green fuel bunkering hub along major transoceanic trade routes.

Prelims facts

  • e-Methanol is synthesized using green hydrogen and captured biogenic CO2.
  • Deendayal Port Authority is located at Kandla in the Gulf of Kutch, Gujarat.

Mains discussion

  • Role of port-led green hydrogen and e-methanol infrastructure in fulfilling India's maritime decarbonisation goals.

Source: PIB

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