India Invests Rs 2,300 Crore To Set Up First E- Methanol Plant At Gujarat’s Kandla Port

India has invested INR 2,300 Crore in a first-of-its-kind project which would supply ships sailing on the Asia-Europe route with e-methanol, with a dedicated plant being built at Gujarat’s Kandla Port.

The facility would turn the port into a green-fueling hub supplying vessels with low-carbon fuel. It is being built by the Deendayal Port Authority in collaboration with the Assam Petro-Chemicals Limited and is expected to have a production capacity of 150 tonnes per day.

The former would have a 76% stake while the latter would own 24% of the project. DPA has contributed INR 567.32 crore in equity, 75 acres of land, renewable power and desalinated water.

It will utilise renewable energy, water and biogenic carbon dioxide to make e-methanol, which would be supplied to ships. According to the Union Ports, Shipping and Waterways Minister, Sarbanda Sonowal, the project would make the country a maritime leader that powers global trade.

The authorities announced that the plant would generate green methanol at $750 per tonne compared to the international rate of $1300 per tonne. It will also create employment for at least 3,500 to 4000 people.

The project would be built in 2 stages: the first, at Rs 1200 crore, would be completed by January 2027, and the other, costing Rs 1100 crore, is being targeted for completion by March next year. The first would lead to the production of 50 tonnes and the second would add another 100 tonnes daily.

The project would help India achieve its decarbonisation goals, as it would contribute to net-zero emission targets by 2027, while enabling India to become self-reliant.

It would also boost maritime capacity as the country is planning to bring 100 additional vessels to the merchant fleet in the coming years to make India among the top 5 biggest shipowning countries by 2047.

The Chief Minister of Gujarat, Bhupendra Patel, said that the coastline of Kutch and Gujarat would power international seagoing vessels through the facility at the Kandla Port, making it the gateway for green energy exports.