India to Get Its First Port-Based E-Methanol Production Facility

India is making further progress in positioning itself as a global leader in the export of alternative fuels in shipping. Ports Minister Sarbananda Sonowal and Gujarat Chief Minister Bhupendra Patel recently participated in laying the foundation for an e-methanol plant at Deendayal Port Authority (DPA) in Kandla, Gujarat. This is the first port-based e-methanol production facility in India. The project is part of the government’s wider campaign to promote cleaner maritime transport in the country.

The facility is also poised to make India a competitive global supplier of green shipping fuels. The plant is scheduled to produce green methanol at much lower cost compared to other global producers, just $750 per ton, against a global rate of $1,300 per ton. 

Recent research has highlighted three Indian ports with strategic advantages to support green fuel production. DPA on India’s west coast is one of the mentioned ports, which is already hosting major investments in green hydrogen production. Last year, the port commissioned L&T Energy to build a 1 MW green hydrogen plant as part of a larger 10MW project.

Again, DPA in April conducted India’s first methanol bunkering demonstration, which at the time was said to be a lead-up activity to the e-methanol plant. With the facility now launched, India’s role in global maritime decarbonization is firming up. The $240 million plant is expected to produce 150 tons per day of e-methanol once fully built. It will use green hydrogen, water, and biogenic CO2 to produce the e-methanol. DPA is targeting to become a major bunkering hub for methanol-powered vessels plying the Asia-Europe trade corridor. 

“The long coastline of Gujarat will now power the world’s ships through Kandla. This plant turns our renewable energy strength into an export,” said Bhupendra Patel. 

The plant is a joint initiative between DPA and Assam Petro-Chemicals Ltd. (APCL), and installation will be done in phases, as scalable modules. Phase 1 will have 50 tons per day capacity at an investment of $125 million. The targeted completion date is January 2027. Phase 2 will add a further 100 tons per day at a cost of $115million, to be completed in March 2027. DPA will contribute 76 percent of the project’s capital while APCL will contribute the remaining 24 percent.