MUMBAI — The foundation stone for a 150‑tonne‑per‑day e‑methanol plant, valued at ₹2,300 crore, was laid on 26 September 2026 at Deendayal Port in Kandla, Gujarat. The project is a joint venture between Deendayal Port Authority (DPA) and Assam Petro‑Chemicals (APC), marking the first port‑based e‑methanol facility in India.
Project Overview
The plant will convert green hydrogen, produced from renewable electricity, into e‑methanol, a low‑carbon fuel that can be blended with conventional diesel or used in industrial processes. The 150 TPD capacity is designed to meet the growing demand for cleaner fuels in the transport and chemical sectors.
Strategic Significance
Deendayal Port, a private port operator in Gujarat, has been expanding its infrastructure to support green energy projects. The new plant will leverage the port’s logistics network to export e‑methanol to domestic and international markets. Assam Petro‑Chemicals, a state‑backed company, is expected to supply the plant with the necessary feedstock and manage downstream distribution.
Financial and Technical Details
The ₹2,300‑crore investment covers the construction of the synthesis unit, storage tanks, and a 50‑kilometre pipeline to the port’s loading facilities. The plant will use a 30‑kilometre electrolyzer to produce green hydrogen from solar and wind power generated at the site. The project is scheduled for commissioning in 2029, with a projected annual output of 54,750 tonnes of e‑methanol.
Stakeholder Statements
In a statement released by the Deendayal Port Authority, the chief executive said the project aligns with the government’s goal of reducing carbon emissions in the transport sector. The Assam Petro‑Chemicals spokesperson noted that the partnership would create employment opportunities in the region and support the state’s industrial development plans.
Regulatory Framework
The project has received clearance from the Ministry of Environment, Forest and Climate Change under the Green Energy Initiative guidelines. It also complies with the Gujarat State Industrial Policy, which offers incentives for renewable‑energy projects. The plant will operate under the Indian Renewable Energy Development Agency (IREDA) financing scheme, which provides low‑interest loans for green technology.
Local Impact
Officials in Kandla anticipate that the plant will generate up to 200 direct jobs during construction and 50 permanent positions once operational. The project is expected to boost the local economy by increasing freight traffic and creating ancillary services for the port.
Future Outlook
Industry analysts view the plant as a pilot for larger e‑methanol projects across India’s coastlines. The success of the Deendayal Port facility could encourage other port operators to adopt similar green fuel initiatives, contributing to the country’s net‑zero targets by 2050.
