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India’s First Port-based e-Methanol Plant at Kandla

India's First Port-based e-Methanol Plant at Kandla

Context

  • India’s first port-based e-methanol production plant is being established at Deendayal Port Authority (DPA), Kandla, Gujarat. The plant will produce e-methanol using renewable power, water and biogenic carbon dioxide (CO₂) for use as a green fuel in shipping.

What is e-Methanol

  • E-methanol is a green fuel produced using renewable energy and captured/biogenic CO₂.
  • It can be used as a lower-carbon alternative fuel in the maritime sector.

It is particularly relevant for reducing emissions from shipping, a hard-to-decarbonise sector

About the e-Methanol Plant

  • Capacity: 150 tonnes per day (TPD) of e-methanol, to be built in two phases.
  • Inputs: Renewable power, water and biogenic CO₂; DPA supplies green hydrogen and desalinated water.
  • Promoters: Joint initiative of Deendayal Port Authority (DPA) and Assam Petro-Chemicals Ltd. (APCL), Namrup, in a 76:24 capital ratio.
  • Investment: ₹2,300 crore — Phase I: 50 Tonnes Per Day (₹1,200 Crore, by January 2027); Phase II: 100 TPD (₹1,100 Crore, by March 2027).
  • Market: Supply to ships on the Asia–Europe International Trade Corridor, at US$750 per tonne against a global rate of US$1,300.

Significance

  • Supports India’s Net Zero by 2070 commitment.
  • Advances Atmanirbharta in energy and Make in India, Make for the World.
  • Positions India as an exporter of green fuel, with Kandla as a green-fuel hub on the Singapore–Rotterdam route.
  • Creates 3,500+ direct and indirect jobs and stimulates the green energy value chain around Kandla.
  • Complements the maritime push: 100 new ships in five years and a top-five ship-owning nation by 2047.

Conclusion

The e-methanol plant at Kandla strengthens India’s green-fuel and maritime ambitions by making India a producer and exporter of clean marine fuel.

Important CTC from this article for UPSC Prelims-

e-Methanol