India’s First Port-Based e-Methanol Production Facility to Produce and Supply Green Fuel to Ships
- Green Methanol Plant to Support “Net Zero 2070” Goal as Gujarat and Assam Chief Ministers, Union Minister Lay Foundation Stone at Kandla ₹2,300 crore investment at Kandla to create more than 3,500 direct and indirect jobs
- “Gujarat is India’s gateway to the world; now it becomes the world’s green energy gateway”: Bhupendra Patel
- “India moves up as the world’s leading maritime power; it will now power the world’s ships with green energy”: Sarbananda Sonowal
- “Assam powered India with oil and tea; now it will power the world with green energy”: Dr Himanta Biswa Sarma
GANDHIDHAM, Gujarat, September 26, 2026: India took a major step towards becoming a green energy exporter as Gujarat Chief Minister Bhupendra Patel, Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal, and Assam Chief Minister Dr Himanta Biswa Sarma laid the foundation stone for the country’s first port-based e-methanol plant at the Deendayal Port Authority (DPA) in Kandla on Saturday.
The 150-tonne-per-day plant will use renewable power, water and biogenic CO₂ to produce e-methanol, a green fuel aimed at enabling cleaner shipping. The fuel will be supplied to vessels operating along the Asia-Europe International Trade Corridor, one of the world’s busiest trade routes.
The project is expected to position India as an exporter of green fuel to the global shipping industry. According to the project details, the plant will produce green methanol at a significantly lower cost than current global production rates — approximately US$750 per tonne, compared with a global rate of around US$1,300 per tonne.
The ₹2,300 crore plant is a joint initiative of the Deendayal Port Authority and Assam Petro-Chemicals Ltd. (APCL), based in Namrup, Assam. The facility will be developed in phases using scalable modules.
Phase I will add 50 tonnes per day of production capacity at an investment of ₹1,200 crore and is targeted for completion by January 2027. Phase II will add a further 100 tonnes per day at an investment of ₹1,100 crore and is targeted for completion by March 2027. The total investment will therefore amount to ₹2,300 crore.
The capital contribution of the two partners is in the ratio of 76:24, with DPA contributing the larger share. DPA’s contribution includes equity capital of ₹567.32 crore, 75 acres of land, desalinated water and renewable energy in the form of green hydrogen.
The facility is expected to be among the largest e-methanol production plants in India and create more than 3,500 direct and indirect jobs. It is also expected to stimulate the wider green-energy value chain around Kandla, including transportation, storage, supply and other ancillary activities associated with the production of green molecules.
The project supports Prime Minister Narendra Modi’s commitment to achieving Net Zero emissions by 2070 and is aligned with the government’s initiatives for energy self-reliance, Atmanirbhar Bharat, Make in India and Make for the World. It also comes amid a broader push to expand India’s maritime sector.
The government plans to add 100 new ships to the country’s merchant fleet over the next five years and aims to make India one of the world’s top five ship-owning nations by 2047. Global shipping major Maersk has also begun ordering containers manufactured in India.
As part of the Deendayal Port Authority’s wider port-development initiatives, the DPA-Cochin Shipyard Limited (CSL) shipbuilding project at Vadinar, estimated at ₹1,520 crore, is also under way. A proposed greenfield shipbuilding and repair cluster at Kuchhadi in Porbandar has also received in-principle approval.
Assam-Gujarat Partnership
Sarbananda Sonowal, who represents Dibrugarh in the Lok Sabha, noted that Assam Petro-Chemicals is based in Namrup, which falls within his constituency. He also highlighted the cultural links between Assam and Gujarat, referring to the legends associated with Lord Krishna of Dwarka and Rukmini of the Northeast, the story of Usha and Aniruddha of Tezpur, and the contributions of 15th-century Assamese saint Srimanta Sankaradeva.
The project was described as an example of Ek Bharat Shreshtha Bharat, bringing together the strengths of Assam and Gujarat in the service of the nation.
“Under Prime Minister Narendra Modi ji’s leadership, India is growing faster and greener than ever, and Gujarat is proud to lead that journey,” Bhupendra Patel said. “Kutch and the long coastline of Gujarat will now power the world’s ships through Kandla. This plant turns our renewable strength into an export and makes Gujarat’s coast a gateway for India’s green energy to the world.”
“PM Narendra Modi ji has given India the confidence to lead, not follow,” Sarbananda Sonowal said. “Just as India is now building its own ships and containers, it will soon make the clean fuel that powers global trade. In the years ahead, Kandla will become a green-fuel hub on the Singapore–Rotterdam route, and this plant a model for every major port in the country. It will open skilled careers for our youth and carry India firmly towards net zero by 2070 and towards achieving the goals of Viksit Bharat by 2047.”
“PM Narendra Modi ji has placed the Northeast at the heart of India’s growth story, and Assam is repaying that trust with enterprise and ambition,” Dr Himanta Biswa Sarma said. “Blessed with the mighty Brahmaputra, abundant sunshine and vast hydropower potential, Assam is ready to become a green energy powerhouse. Today, an Assam company carries that strength from Namrup to Kandla, proving that the Northeast will power India’s clean energy future.”
Also present at the foundation-stone ceremony were Kutch Lok Sabha MP Vinod Chavda; Gandhidham MLA Maltiben Kishor Maheshwari; Political Secretary to the Government of Assam Taranga Gogoi; Assam Petro-Chemicals Chairman Bikul Deka and Vice Chairman Hemanta Gogoi; and Deendayal Port Authority Chairman Sushil Kumar Singh, among other government officials and representatives of the two organizations.
The ceremony was held at the DPA Exhibition Ground in Gandhidham.