India laid the foundation stone on Saturday for its first port-based e-methanol plant at Deendayal Port in Kandla, Gujarat. The Rs 2,300 crore project will supply green fuel to ships on the Asia-Europe trade corridor.

The ceremony at Gandhidham was led by Union Ports Minister Sarbananda Sonowal, Gujarat Chief Minister Bhupendra Patel and Assam Chief Minister Himanta Biswa Sarma. The plant is a joint venture between the Deendayal Port Authority and Assam Petro-Chemicals Ltd.

At full capacity, the facility will produce 150 tonnes of e-methanol per day from renewable power, water and biogenic carbon dioxide. Phase one will add 50 tonnes per day by January 2027 at a cost of Rs 1,200 crore, while phase two adds 100 tonnes per day by March 2027 for Rs 1,100 crore.

The plant is projected to make green methanol at about $750 a tonne, well below the global rate of around $1,300. It is expected to create more than 3,500 direct and indirect jobs.

Why it matters: The project positions India as a producer of green marine fuel and supports its target of net-zero emissions by 2070.