India's First Port-Based E-Methanol Plant Breaks Ground at Kandla
- The foundation stone was laid on 26-27 September 2026 for India's first port-based e-methanol plant at Deendayal Port Authority, Kandla, Gujarat.
- The Rs 2,300 crore project is a JV between Deendayal Port Authority and Assam Petro-Chemicals, with a planned 150 TPD capacity across two phases (Phase I 50 TPD by Jan 2027, Phase II 100 TPD by Mar 2027).
- It will use renewable power, water and biogenic CO2 to produce e-methanol for vessels on the Asia-Europe trade corridor.
- A foundation stone is not operating capacity; delivered cost (stated near $750/tonne vs a global ~$1,300) and Phase I commercialisation are the real tests.
- The foundation stone was laid on 26-27 September 2026 for India's first port-based e-methanol plant at Deendayal Port Authority, Kandla, Gujarat.
- The Rs 2,300 crore project is a JV between Deendayal Port Authority and Assam Petro-Chemicals, with a planned 150 TPD capacity across two phases (Phase I 50 TPD by Jan 2027, Phase II 100 TPD by Mar 2027).
- It will use renewable power, water and biogenic CO2 to produce e-methanol for vessels on the Asia-Europe trade corridor.
- A foundation stone is not operating capacity; delivered cost (stated near $750/tonne vs a global ~$1,300) and Phase I commercialisation are the real tests.
- Business Standard (27 Sep 2026): https://www.business-standard.com/economy/news/economy-news-foundation-stone-laid-for-india-first-port-based-e-methanol-plant-126092700112_1.html
- The Hindu BusinessLine (26 Sep 2026): https://www.thehindubusinessline.com/economy/logistics/deendayal-port-and-assam-petro-chemicals-lay-foundation-stone-for-2300-crore-e-methanol-plant-in-gujarat/article71512630.ece
- India Today NE (26 Sep 2026): https://www.indiatodayne.in/assam/story/assam-gujarat-partnership-to-power-indias-first-port-based-e-methanol-plant-at-kandla-1455713-2026-09-26
The development
On 26-27 September 2026 the foundation stone was laid for a 150-tonne-per-day e-methanol plant at Deendayal Port Authority, Kandla, as a joint venture between DPA and Assam Petro-Chemicals Ltd. Total investment is stated at Rs 2,300 crore across two phases: Phase I (50 TPD, Rs 1,200 crore) targeted for January 2027 and Phase II (100 TPD, Rs 1,100 crore) for March 2027. The plant will use renewable power, desalinated water and biogenic CO2 to produce e-methanol for maritime bunkering on the Asia-Europe trade corridor.
Why it matters
Maritime fuel is a hard dependency layer for both trade and defence logistics, and green marine fuel is emerging as the compliance currency of international shipping. A port-sited, renewable-powered e-methanol facility converts policy ambition on green shipping into physical capacity with a named offtake corridor, and can anchor a wider green-molecule cluster - hydrogen, storage, bunkering - at one of India''s largest ports.
The dependency and systems frame
The project still depends on reliable renewable power, a steady biogenic CO2 supply, and the ability to deliver fuel at the stated competitive cost - reported around $750 per tonne against a global benchmark nearer $1,300. A foundation stone is not operating capacity. The systems test is whether Phase I reaches commercial production on the January 2027 target, whether the electrolyser and synthesis equipment are domestically sourced or imported, and whether Kandla becomes a repeatable bunkering node rather than a one-off plant.
What to watch
- Phase I mechanical completion and first commercial output against the January 2027 target.
- Actual delivered cost of e-methanol versus the stated $750/tonne benchmark and global prices.
- Whether the electrolyser, CO2-capture and synthesis equipment are domestically manufactured or imported.
- Whether additional green-fuel projects - hydrogen, ammonia, methanol - cluster around Kandla or remain isolated.
Track the systems we watch
Signals, reports and briefings on India’s industrial transformation.