Kandla, Gujarat: India is set to establish its first port-based e-methanol production facility at Deendayal Port Authority in Kandla, with an investment of ₹2,300 crore. The project is being developed as a joint venture between Deendayal Port Authority (DPA) and Assam Petro-Chemicals Ltd (APCL).

The facility will have a total production capacity of 150 tonnes per day and will manufacture e-methanol using renewable power, water and biogenic carbon dioxide. The green fuel will be supplied to international vessels operating along the Asia-Europe International Trade Corridor.

Union Shipping Minister Sarbananda Sonowal laid the foundation stone for the facility at Kandla. The project is being developed in phases, with the first phase expected to add 50 tonnes per day of capacity.

Project Highlights

• Investment: ₹2,300 crore
• Total capacity: 150 tonnes per day
• Location: Deendayal Port Authority, Kandla, Gujarat
• Partners: Deendayal Port Authority and Assam Petro-Chemicals Ltd
• Phase I: 50 tonnes per day at ₹1,200 crore
• Phase II: Additional 100 tonnes per day at ₹1,100 crore
• Phase I target: January 2027
• Phase II target: March 2027
• Employment: More than 3,500 direct and indirect jobs

According to the official statement cited in the report, DPA and APCL will hold 76% and 24%, respectively, in the project. DPA’s contribution includes ₹567.32 crore in equity, 75 acres of land, desalinated water and renewable energy in the form of green hydrogen.

The facility is expected to support the development of a green fuel ecosystem around Kandla, covering activities such as transportation, storage and supply. The project is also intended to support the use of lower-carbon fuels in international maritime transport.

The official statement estimates production costs at around $750 per tonne, compared with a global rate of approximately $1,300 per tonne.

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